cover image: Making the Federal Excise Tax on Fuel Inefficient Vehicles More Effective /

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Making the Federal Excise Tax on Fuel Inefficient Vehicles More Effective /

26 Jul 2017

However, relatively low carbon prices (in the range of $10 to $30/tonne), will be insufficient to induce all of the key changes that are needed to transition to a low-carbon economy and achieve GHG targets in 2030, particularly in the transportation sector where individual and company choices on driving behavior and vehicle purchase are key drivers of emissions growth. [...] It is similar in design to the U. S. “Gas Guzzler Tax”, in capturing only the most polluting vehicles on the market, and is a tax based solely on the vehicle’s average weighted fuel consumption.11 The calculation of the green levy is determined by Natural Resources Canada and combines 55% of a vehicle’s city fuel consumption rating with 45% of the highway fuel consumption rating. [...] The fuel consumption threshold for application of the tax is also too high, with many of the worst performing vehicles in each category not captured and the van, pick-up truck and heavy- duty vehicle categories exempt. [...] In 2011, the registration tax created EUR 2.6 billion in fees and is the largest source of environmentally related revenues for the Norwegian government out of a total of EUR 8.2 billion. [...] This preserves a range of vehicle choices at a variety of price points that would not be subject to the tax, while extending the coverage of the tax to a greater number of vehicles.
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Pages
27
Published in
Montreal, QC, CA

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