What Consequences Follow Gas Engine Elimination?

Norway has set the bar high for electric vehicle integration. They are currently ranked as the top seller of electric vehicles worldwide. Although inspiring, new repercussions have come to light detailing what a fully-electric future really entails. In particular, gas engine elimination has lead to limited government funding in Norway. A consequence that displays financial upset for this oil-producing country. 

How did Norway achieve electric adaptation so quickly?

In order to sway the Norwegian people, government officials enacted a series of tax reductions and financial incentives for EV brands. As a result, powerhouse electric manufacturers were able to more readily compete with gas engine counterparts. Consumer opinion soon shifted as well. Although these financial carrots generated great success, a direct problem has risen. 

Less gas guzzling engines on the road means less vehicles being taxed. With the vast spike in electric mobility, Norway is feeling the financial loss, more heavily than anticipated. It’s a true example that good change does have consequences at times. In this instance, the rise of EVs is almost too good to be true from a financial standpoint.  

Norway’s efforts to promote electric vehicles has ultimately cost them more as EV popularity has increased. At the beginning of the incentive era, the government introduced new highway regulations where EV’s were exempt from toll charges and parking fees. And really, who could pass up such an offer?

Just last month the Nordic country broke its most recent record of EV sales by reaching up to 77.5% of the automotive market. That number is only expected to climb with the current electric momentum building worldwide.

Balancing the good with the bad 

According to Anette Berve, spokesperson for the Norwegian Automobile Federation, the current situation is a “clash of two different goals” essentially. Though the switch to electric is adaptmently good for the environment, the financial setback is very real. With less gas-guzzling engines to tax, the source of income for the government is diminishing. That means infrastructure rebuilds and other important projects take the back burner. Ultimately, at some point there is some level of aknowledgement that taxes will make a return in one way or another for EV drivers. 

What other countries can learn about gas engine elimination?

Though Norway took an aggressive approach to reaching electric mobility, the current tax shortages should pose a lesson for all countries in pursuit of this goal. With most automakers pushing for all-electric usage by 2035, there are plenty of logistics to work out. Particularly the way said change can fully sustain the way in which governments currently work. It threatens the viability of other aspects of daily life.

In general, the electric market is still relatively new. It’s just getting its footing in a highly competitive gas engine market. And now, there’s even greater push for change as environmental issues paramount. It’s not just about the cool factor of driving a Tesla. It plays at a much bigger notion. Now, both automakers and government officials will have to analyze the pros and cons of gas engine elimination. Thereby taking into account how they’ll sustain certain industries or projects down the road. 

At this time, EV ownership is still relatively low in the United States despite its rise in popularity. That means, it’s likely similar incentives that Norway officials used to attract drivers will come into fruition here in the U.S. In all truth, it might be the only way we reach such ambitious goals set in front of us.