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By your logic the EV subsidy (or, tax cut relative to gasoline cars, but it should be the same effect) in Norway shouldn't have worked. Yet it has been wildly s
by audunw 3y ago
By your logic the EV subsidy (or, tax cut relative to gasoline cars, but it should be the same effect) in Norway shouldn't have worked. Yet it has been wildly successful.
Yes, it may encourage manufacturers to increase price, but that gives them more money to do marketing, and incentivizes them to try to sell more of the product since the margins are now so good.
It was striking how fast all the car marketing in Norway changed towards pushing EVs. While in other countries the car makers still seem to be primarily pushing ICEVs. Considering that consumer awareness is an important aspect of transitioning to a new solution, this is a very good thing IMO.
I think it's also good that Norway didn't try to limit the subsidy to cheaper cars, to not fall for the temptation to exclude luxury cars. (Until very recently, now that the transition is already nearly complete). Making sure nobody feels excluded or singled out makes political support much easier and simplifies everything.