Subscribe free to our newsletters via your
. Space Industry and Business News .




CAR TECH
Booming electric car sales under fire in Norway
by Staff Writers
Oslo (AFP) Aug 31, 2014


Ministers in Norway -- a major and rich oil-producing country -- are under increasing public pressure to reduce perks and tax breaks for booming electric car sales.

"It's become a problem," said Erik Haugstad, a bus driver in the Oslo region who complains about the numerous electric cars clogging bus lanes, which they have the right to use in Norway.

The cars are also exempt from urban toll payments or fees at public parking spaces, where they can recharge batteries without cost.

But above all, they are exempt from Norway's sky high sales taxes and VAT.

Norway brought in the generous incentives to cut back on greenhouse gas emissions from traffic, which accounts for 10 percent of total emissions in the Nordic nation.

The policy has been so successful that 32,000 electric cars are now on the road -- by far the highest rate per capita in the world, in a country with a 5.1 million population.

"I'm a bus driver and I want to transport my passengers as quickly as possible. So, I'd like electric cars to leave the bus lanes, where they're getting in my way," Haugstad said.

"These delays have a cost for society. Time lost by thousands of our passengers in traffic is far greater than that gained by a few dozen electric car drivers."

He said the cars can create a vicious circle -- tired of being stuck in traffic, bus users could be tempted to buy an electric car themselves, worsening the congestion problem.

- 13 percent of sales -

Electric cars already represent 85 percent of traffic in bus lanes during rush hour, according to a study by the Norwegian Public Roads Administration on a busy stretch of road outside Oslo.

"It's a subject we discuss very often with colleagues during lunch break. Many of them are far more aggressive and don't measure their words as much as me," Haugstad said.

No decision has been made so far, but it looks increasingly likely that authorities will take action to unclog congested areas -- especially during rush hour.

In the meantime, electric car sales keep growing. From the popular Leaf by Japan's Nissan to high-end US-made Tesla S, they have accounted for 13 percent of new car sales since the beginning of 2014, far ahead of the rest of the world.

In March, the Tesla became the highest selling car in a single month in Norway's history, despite its relatively high price.

Although a basic model costs about 60,000 euros ($79,000), it still sounds like a bargain considering that a price including taxes would be roughly double.

The popularity of electric cars has caught the authorities off guard, as they expected to keep the incentives in place until 2017, or until they number 50,000.

At the current pace, that figure could be reached in the beginning of 2015, forcing the government to rethink its costly policy.

The tax exemptions alone account for up to 4 billion kroner (500 million euros, $650 million), according to the state's own estimates.

"We might make lowering adjustments in the future," Prime Minister Erna Solberg recently told Norwegian newspaper VG.

"But I can promise drivers that there will still be fiscal advantages to driving an electric car."

The commitment is important, because 48 percent of electric car owners say their main reason for buying them was to save money.

According to a survey by the Norwegian Electric Vehicle Association, only 27 percent said it was for environmental reasons and 12 percent to gain time in their rides.

"It's too early to remove the fiscal incentives. The market isn't competitive enough yet" compared to that of fossil-fuel-driven cars, said Christina Bu, general secretary of the association.

"If the tax and VAT exemption ends, the market could collapse and it would be hard for Norway to reach its climate goals. We must increase the number of electric cars, not reduce it."

.


Related Links
Car Technology at SpaceMart.com






Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.

Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle








CAR TECH
Sweden court accepts receivership for Saab carmaker
Stockholm (AFP) Aug 29, 2014
A Chinese-owned company set up to take over Saab's assets after the troubled Swedish carmaker's bankruptcy said on Friday it had succeeded in being placed in receivership. National Electric Vehicle Sweden, or NEVS, had applied to be protected against creditors while seeking new sources of financing. "The district court of Vaenersborg today, Friday August 29, accepted NEVS's request for ... read more


CAR TECH
Argonne scientists pioneer strategy for creating new materials

The power of salt

Researchers map quantum vortices inside superfluid helium nanodroplets

Laser pulse turns glass into a metal

CAR TECH
UAE contracts for enhanced tactical communications

Harris' tactical manpack radio gets NSA certification

General Hyten takes control of AFSPC

Saudis seek to upgrade AWAC planes

CAR TECH
Sea Launch Takes Proactive Steps to Address Manifest Gap

SpaceX rocket explodes during test flight

Russian Cosmonauts Carry Out Science-Oriented Spacewalk Outside ISS

Optus 10 delivered to French Guiana for Ariane 5 Sept launch

CAR TECH
Galileo Satellites Incident Likely Result of Software Errors

Indian start-up launches shoes that show you the way

Update on Galileo launch injection anomaly

Experts probe launch failure for EU's satnav project

CAR TECH
China Southern swings to net loss in first half

MH370 may have turned south 'earlier' than thought

First of 3 upgraded aerial tankers returned to France

F-35 hanger construction work contracted by Navy

CAR TECH
Nanoplasmonic and optical resonators create laser-like light emission

Ferroelectric Materials Suffer Unexpected Electric Polarizations

Electrical engineers take major step toward photonic circuits

'Cavity protection effect' helps to conserve quantum information

CAR TECH
NASA Begins Hurricane Mission with Global Hawk Flight to Cristobal

NASA Rainfall Satellite Out Of Fuel, but Continues to Provide Data

Analyzing Snowfall Data for GPM

How much do climate patterns influence predictability across the United States?

CAR TECH
Leading scientists call for a stop to non-essential use of fluorochemicals

Thailand totters towards waste crisis

Trash burning worldwide significantly worsens air pollution

Black carbon linked to cardiovascular health




The content herein, unless otherwise known to be public domain, are Copyright 1995-2014 - Space Media Network. All websites are published in Australia and are solely subject to Australian law and governed by Fair Use principals for news reporting and research purposes. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA news reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement, agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement All images and articles appearing on Space Media Network have been edited or digitally altered in some way. Any requests to remove copyright material will be acted upon in a timely and appropriate manner. Any attempt to extort money from Space Media Network will be ignored and reported to Australian Law Enforcement Agencies as a potential case of financial fraud involving the use of a telephonic carriage device or postal service.