POSTCARD FROM NORWAY

Norway has a population of something around 5 million and has gained much wealth from its North Sea oil reserves and sales to Europe.  It is also a significant exporter of LNG gas.

A perception around Norway is that there is a high number of electric cars.

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20170820_230611At first this seemed to reflect its environmental interests and assumed culture.  On further investigation however, it transpires that there are generous concessions for the purchase and running of electric cars (no VAT / GST; no parking fees and no toll charges).

An Oslo Tesla owner spoken to advised that his Tesla sedan cost $US100,000 but that would have been $US200,000 without the concessions.

It is understood that the concessions were offered for the first 50,000 electric cars sold – but that it continues to apply after 100,000 sales.  There is no guarantee on their continuation but with the concerns that they may end soon, we were advised that the sale of electric cars is booming – to gain the VAT exemption.

It seems something of an irony that Norway is promoting electric cars and renewable energy (its significant hydro power sources) while exporting non-renewable fossil fuels..