Norwegian Emissions of CO2 1987–1994 A Study of Some Effects of the CO2 Tax

• Published in: Environmental & resource economics Vol. 9; no. 3; pp. 275 - 290
• Main Authors: Larsen, Bodil Merethe, NESBAKKEN RUNA
• Format: Journal Article
• Language: English
• Published: Dordrecht Springer Nature B.V 01.04.1997
• Subjects: Atmospheric models; Carbon dioxide; Carbon dioxide emissions; Consumption; Economic analysis; Economic models; Emissions; Energy consumption; Environmental economics; Fossil fuels; Greenhouse effect; Greenhouse gases; Macroeconomics; Nitrogen oxides; Petroleum; Sulfur dioxide; Taxation; Taxes; Norway
• ISSN: 0924-6460; 1573-1502
• DOI: 10.1023/A:1026464129609

Several countries have introduced taxes on fossil fuels with the aim of reducing atmospheric emissions, partly because of local environmental goals (SO2, NOx) and partly to participate in a global effort to reduce emissions of greenhouse gases. Many macroeconomic studies, based on both global and national models, have been made of how emissions can be reduced with the help of taxes and the consequent reduction in GDP following the introduction of such taxes. Norway has had a CO2 tax for five years, thereby providing a unique opportunity to evaluate the effects of this tax on emissions. The paper provides a counterfactual analysis of energy consumption and emissions if no CO2 taxes had been introduced, compared with the actual situation in which such taxes exist. The effect of a CO2 tax on oil consumption, and thus CO2 emissions, is studied on the basis of partial economic models for various sectors of the Norwegian economy. The study indicates that the CO2 tax has had an impact on CO2 emissions in Norway.