Vista partner Orvika Rosnes has published a new research paper with Statistics Norway

Oslo, 16.12.2021

Vista partner Orvika Rosnes has together with Brita Bye, Kevin R. Kashual and Hidemichi Yonezawa in Statistics Norway and Karen Turner by the Centre for Energy Policy at the University of Strathclyde published a ny reserach paper «The road to a low emission society: Costs of interacting climate regulations».

Transportation is one of the main contributors to greenhouse gas emissions. In Norway, emissions from transport make up around a third of total greenhouse gas emissions. Climate regulations on transportation are often a mix of sector-specific regulations and economy-wide measures (such as emission pricing). We analyze the costs of such overlapping climate regulations: the cap on domestic non-ETS emissions and the goal of all new cars for private households being electrical vehicles by 2030.

The analysis shows that welfare costs to achieve an emission target is tripled when climate policies overlap (compared to the same decrease in emissions achieved through a uniform price on emissions in 2030). To reach the goal of all new private cars being electrical by 2030, current lucrative policies for electrical vehicles must be considerably strengthened. Society in general will profit from a larger share of the decrease in greenhouse gas emissions being taken in other sectors, with not everyone buying electrical vehicles.

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