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EV Watch: Can The US Become The Next Norway?

Photo Courtesy John O'Nolan

Norway is one of the most scenic countries in Europe. It has one of the highest happiness indexes in the world and is also becoming one of the richest nations. A combination of free market capitalism, social welfare, and oil money has created a society that many want their government to emulate. 

Norway is also one of the most electric vehicle (EV) friendly countries. A recent assessment by Norwegian auto publication Bilbransje 24 found that EV registrations outnumbered petrol cars. A combination of record-high EV sales and a sharp decline in diesel vehicle utilization contributed to the impressive EV adoption rate. 

The analysis follows a record 94% new car market share for EVs set in August. France24 said the figure was boosted by the Tesla Model Y, which accounted for 18.8% of sales, along with the Hyundai Kona and Nissan LEAF.

According to Norwegian sources, around 68,500 EVs have been purchased since the start of 2024. More than 10,000 were sold in August alone.

The Norwegian government has mandated that it will only sell zero-emission vehicles by 2025, and EVs are playing a major role. Despite having a fairly oil-reliant economy, Norway is committed to decarbonizing personal and public transportation. 

Photo Courtesy Andersen EV

Those who don’t switch to hybrid or electric cars will pay a polluter’s tax, so to speak. The government also incentivizes people in other ways, such as lowering ferry fares for EV drivers compared to petrol car owners. 

Norway’s EV mandate is a decade earlier than the European Union’s (EU) 2035 EV sales policy, and it’s particularly interesting given that it’s not an EU member and the economy has been heavily centered around oil and gas production. However, Norway has embraced electric cars ever since they became a viable transportation option. 

Bilbransje 24 said EV demand sparked in 2011 when the Mitsubishi i-MiEV arrived. Just more than 1,000 units of the diminutive EV were sold, but it began the trend of Norway’s ascent to popularity among staunch EV advocates. 

Diesel car demand also peaked in 2017, making up 47% of Norwegian vehicle registrations. Records indicate hybrids were introduced in the early 2000s but didn’t gain traction until 2007.

Gas cars peaked in 2005, and today only have about 26.3% of the market. Electric power is about the same, and diesel is down to 35%.

The tax incentives are believed to be one of the main reasons Norway’s EV boom occurred. Some include no import tax on foreign EVs and tax breaks for electric company cars. 

Video Courtesy Hoser

Norway’s EV success and overall civilian satisfaction raise the question: Can the United States emulate any of these practices to speed up its EV adoption? And can the American government do anything to make people more engaged and excited about the prospect of it?

Let’s start with a few reasons Norway’s EV adoption is farther along. First is its population density. Most of Norway’s 5.5 million people live near the capital city of Oslo (for comparison, Minnesota has a population of about 5.7 million). The rest of the country is mountainous and bitterly cold, and with the majestic fjords separating a lot of the population, traveling by ferry or boat is easier in some respects. It’s also a much smaller country than the U.S. There are fewer cars on the road compared to the nearly 340 million people who make up the entire country, and two states aren’t even connected to the Continental U.S.

Second, Norway is a more homogenous nation. The U.S. is 50 entities — with their own governments, cultures, and geography — bundled into one.

There is less vying over regional interests in the Nordic country than in America. For example, people in the Dakotas are more apprehensive about EV adoption because there are fewer public charging stations. However, those in California or New York — states with ample charging infrastructure — are more likely to buy an EV because the state government is mandating it or because it’s more practical. 

These varying interests lead to differing attitudes and focuses. Some see EVs as one of the only ways to keep the car-reliant system moving without contributing to climate change. Others argue EVs aren’t practical in a country this size, cost too much, aren’t reliable, and infringe on freedom of choice. However, most anti-EV claims have been debunked

The U.S. and Norway both believe that incentivizing EV adoption is one way to really drive sales. The Inflation Reduction Act (IRA) offers many EV tax credits, with up to $7,500 off North American-made EVs and $3,750 for EV battery minerals sourced within the U.S., Canada, or Mexico. However, the IRA only offers this credit on EVs at or below $55,000 MSRP, disqualifying a lot of electric cars. Likewise, unlike Norway, the IRA doesn’t offer discounts for foreign EVs unless made in North America. 

Photo Courtesy J Dean

Even though data shows a rising number of states with more EV registrations, the U.S. hasn’t seen more EVs on the road than gas-powered cars. For one thing, the country’s charging network needs to expand, especially in rural areas. The good news is that more keep getting deployed in these regions. Current U.S. Department of Energy data says there are 3.5 million registered EVs on U.S. roads, which pales compared to the 242.9 million internal combustion vehicles. 

The federal government says it wants EVs to be 50% of all new car sales by 2030. California is going to full electric car sales in 2035 and already has more than 1 million EVs and hybrids on its roads.

Many states have already cracked the six-figure mark, while others are still in the low thousands. Charging networks are constantly expanding, and Tesla’s Supercharger network is now universal.

Replicating the Norwegian EV market may not be realistic for a country the size of the U.S. However, examining and implementing the tactics that worked for Norway may encourage more American EV sales. Buy-in by the U.S. population about the benefits of EVs is crucial. 

“The future is electric — built on a shared, pollution-free vision grounded in economic prosperity, job growth, and consumer savings,” Amanda Leland, executive director of the nonprofit advocacy group Environmental Defense Fund, said in a statement about updated March U.S. Environmental Protection Agency standards. “Today, we continue our journey toward a cleaner, healthier world.”

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