Briefing

Fiscal instruments favouring electric over conventional cars are greener

Briefing Published 24 Sep 2019 Last modified 15 Feb 2023

11 min read

Photo: © Pixabay / andreas160578

Financial incentives and taxes set by countries can encourage consumers to buy passenger cars with lower carbon dioxide (CO2) emissions. An increase in the uptake of electric vehicles reduces emissions of CO2 and air pollutants such as nitrogen oxide (NOx) and particulate matter (PM). Examples from a number of countries show that this uptake can be enhanced by well-designed incentives and taxes. In contrast, tax schemes that promote conventional cars labelled as cleaner do not always result in reduced emissions.

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The country assessments are the sole responsibility of the EEA member and cooperating countries supported by the EEA through guidance, translation and editing.

For references, please go to https://eea.europa.eu./publications/fiscal-instruments-favouring-electric-over/taxes-and-incentives-promoting-electric or scan the QR code.

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