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Why Norway — the poster child for electric cars — is having second thoughts

@EQUITYMATES|13 November, 2023

When we think forward-thinking nations, we often think of the Scandinavian countries. So if asked where electric vehicles were being adopted most quickly, most people would answer Denmark, Norway or Sweden. And you wouldn’t be wrong. Norway has been a leader in electric vehicle adoption. 87% of new cars sold in Norway are fully electric, compared to 13% in the European Union and 7% in the United States. However, the story isn’t that straightforward. This article from Vox explains why Norway is starting to have second thoughts about electric vehicles.

The Norwegian government found that it’s heavy subsidies for EVs was having the desired effect – Norwegians were substituting internal-combustion engines for electric vehicles – but it was also having an unanticipated effect – Norwegians were also substituting public transport and bicycles for electric vehicles. Overall car use was rising and this was affecting other Norwegian government transport priorities. Namely, untethering themselves from the car, encouraging residents to cycle or take public transport and freeing urban spaces from traffic congestion. As a result, Noway’s government has started to pull back on some of its EV subsidies.

The 2010’s were a boon for the electric vehicle industry in Norway, especially as the company enjoys plenty of emissions-free, cheap hydropower. But the success of their pro-EV policies have ultimately shown the need for a more complete transport policy. As the rest of the world plays catch up to the Scandinavian countries in EV adoption, it is worth paying attention to how they are changing their own policies.


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