Norwegian carbon taxes and their implication for fossil fuels

Conference · Sun Dec 31 04:00:00 EST 1995

OSTI ID:171600

Kaarstad, O ^[1]

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1. Principle Research Adviser, Energy and Environment, Trondheim (Norway)

The Scandinavian countries, and in particular Norway and Sweden, have since 1990/91 taxed CO{sub 2}-emissions with carbon tax of about US $150 per ton of CO{sub 2}. One may therefore say that these countries have placed themselves in a role as {open_quotes}carbon tax laboratories{close_quotes}. These very high CO{sub 2}-taxes have been in place for about four years and the first lessons from this experience are reported. In general it would seem as if the taxation mechanism is less efficient than economists have expected. The CO{sub 2}-emissions are increasing in both Norway and Sweden and the stabilization goal to the year 2000 will not be achieved in spite of the high taxation. The fossil fuel industry will have to learn to live with the climate change question which is inherently hostile to fossil fuels. It is argued that a more informed and active participation by the fossil fuel industry is needed in the climate change discussion. In addition the image of fossil fuels will benefit from showing real and potential improvement in the area of greenhouse gas emissions in the whole energy chain from production to combustion. The R&D effort being done into CO{sub 2}-capture and -disposal is creating such an option for the future. It is argued that the image of the entire fossil fuel industry will benefit from the creation of a {open_quotes}CO{sub 2}-free{close_quote} option or vision for oil, gas and coal. A number of examples are shown where today (or in the near future) actual CO{sub 2}-disposal in underground formations are taking place.

• Research Organization: Coal and Slurry Technology Association, Washington, DC (United States); USDOE Pittsburgh Energy Technology Center, PA (United States)
• OSTI ID: 171600
• Report Number(s): CONF-950313--; ON: TI96120232
• Country of Publication: United States
• Language: English

Related Subjects

01 COAL, LIGNITE, AND PEAT
20 FOSSIL-FUELED POWER PLANTS
AIR POLLUTION CONTROL
CARBON DIOXIDE
COAL
COMBUSTION
FOSSIL-FUEL POWER PLANTS
GREENHOUSE EFFECT
GREENHOUSE GASES
NORWAY
SWEDEN
TAX LAWS
TAXES