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I don't think this has much to do with the oil wealth. These are only subsidies in the sense that there is an absence of a tax that would otherwise roughly doub
by marvin 8y ago
I don't think this has much to do with the oil wealth. These are only subsidies in the sense that there is an absence of a tax that would otherwise roughly double the cost of the car. Almost no Norwegians would normally buy a car with an $80,000 (US) base price; most Tesla buyers would normally go for something less than half of that price. So the lost tax revenues aren't proportional to the price of the car.
Norway's oil wealth mostly goes towards a massive public sector and a very comprehensive social safety net, and it doesn't enter the economy directly -- only in the shape of a 3% dividend from previously invested oil tax money.
- vinni2 8y ago> So the lost tax revenues aren't proportional to the price of the car. So what? It’s still lost revenue for the government. 60% of the car sales won’t give any taxes. And they still have to maintain roads and infrastructure for all those cars. They are able to afford because the oil industry creates lots of businesses hotels and jobs and they pay taxes on their income. Which is a huge part of Norwegian economy. Imagine the economy of Norway without oil it would not have been so rich. Probably the closest example is Denmark they already abandoned the tax benefits for EVs. Because it’s a huge part of tax revenue the government can’t simply give up.