Abstract
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.
This is a preview of subscription content, log in via an institution to check access.
Similar content being viewed by others
References
Aasness, J. and B. Holtsmark (1993), Consumer Demand in a General Equilibrium Model for Environmental Analysis. Discussion Papers No. 105, Statistics Norway.
Alfsen, K. H., T. Bye, and E. Holmøy, eds. (1996), MSG-EE: An Applied General Equilibrium Model for Energy and Environmental Analyses. Forthcoming, Statistics Norway.
Brendemoen, A. and H. Vennemo (1994), ‘A Climate treaty and the Norwegian Economy: A CGE Assessment', Energy Journal 15(1), 77–93.
Cappelen, Å. (1992), ‘MODAG, A Macroeconometric Model of the Norwegian Economy', in L. Bergman and Ø. Olsen, eds., Economic Modeling in the Nordic Countries. Contributions to economic analyses, North-Holland, 55–93.
Dubin, J. A. and D. L. McFadden (1984), ‘An Econometric Analysis of Residential Electrical Appliance Holdings and Consumption', Econometrica 2(52), 345–362.
ECON (1994), Virkninger av CO2 -avgift på olje-og gassutvinning i Norge.Delrapport 4: Sam-mendrag og konklusjoner (Effects of a CO2 tax on petroleum extraction in Norway. Report 4: Summary and conclusions). ECON Report No. 326/94, Oslo (In Norwegian).
Glomsrød, S., H. vennemo and T. Johnsen (1992), ‘Stabilization of Emissions of CO2: A Computable General Equilibrium Assessment', Scandinavian Journal of Economics 94(1), 53–69.
Hanemann, M. (1984), ‘Discrete/Continuous Models of Consumer Demand', Econometrica 3(42), 541–561.
Harvey, A. C. (1981), The Econometric Analysis of Time Series, Oxford: Philip Allan.
Holmøy, E. (1992), ‘The Structure and Working of MSG-5, An Applied General Equilibrium Model of the Norwegian Economy', in L. Bergman and Ø. Olsen, eds., Economic Modeling in the Nordic Countries, North-Holland.
Johnsen, T. A., B. M. Larsen, and H. T. Mysen (1996), ‘Economic Impacts of a CO2 Tax', in Alfsen et al. (1996).
Jorgenson, D. W. and P. J. Wilcoxen (1993), ‘Reducing U.S. Carbon Dioxide Emissions: An Assess-ment of Different Instruments', Journal of Policy Modelling 15(5–6), 491–520.
Ljones, A., R. Nesbakken, S. Sandbakken, and A. Aaheim (1992), Household Energy Consumption.The Energy Survey 1990. Reports 92/2, Statistics Norway.
Manne, A. and R. G. Richels (1991), ‘Global CO2 Emission Reductions: The Impact of Rising Energy Costs', Energy Journal 12(1), 87–107.
Mysen, H. T. (1991), Substitusjon mellom olje og elektrisitet i produksjonssektorene i en makromodell (Substitution between fossil fuels and electricity in the production sectors in a macroeconomic model). Reports 91/7, Statistics Norway. (In Norwegian).
Nesbakken, R. and S. Strøm (1993), The Choice of Space Heating System and Energy Consumption in Norwegian Households. Discussion Papers No. 192, Statistics Norway.
OECD (1992), Costs of Reducing CO 2 Emissions.Evidence from Six Global Models. Economics and Statistics Working Papers, OECD.
Author information
Authors and Affiliations
Rights and permissions
About this article
Cite this article
LARSEN, B.M., NESBAKKEN, R. Norwegian Emissions of CO2 1987–1994 A Study of Some Effects of the CO2 Tax. Environmental and Resource Economics 9, 275–290 (1997). https://doi.org/10.1023/A:1026464129609
Issue Date:
DOI: https://doi.org/10.1023/A:1026464129609