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Environmental economist recommends higher taxes on electric cars

Sales of electric cars are going so well that taxes can be raised earlier than planned, believes an environmental economist.  
13. JAN 2025 10.41
Indkøb
Transport

Sales of electric cars in Denmark are going so well that taxes on electric cars can be raised earlier than planned. This is the opinion of Lars Gårn Hansen, an environmental economist and professor at the Department of Food and Resource Economics at the University of Copenhagen.

- This makes it possible to return to uniform taxes on electric and fossil cars sooner than planned, he says in an interview with the Altinget.

For many years, there has been a low registration tax on electric cars in Denmark. This was a political decision to promote sales of the more climate-friendly car.

The plan is not to fully phase out the lower registration tax until 2035. But sales of electric cars are going better than planned, and in 2024 the electric car took over the driving seat on the Danish market. In December alone, 17,469 new cars were registered, of which 61.5 percent. were electric, and a total of 51.5 percent of the 173,047 passenger cars sold in 2024 were electric.

An analysis from Mobility Denmark has also shown that Denmark will already have one million electric cars on the roads by the beginning of 2028 if taxes are maintained at the current level. Politically, it has been agreed that it will not be until 2030 that there will be one million electric cars.

- When it turns out that the goal can be achieved using smaller tax rebates than we thought, it indicates that we need to adjust the instrument, says Lars Gårn Hansen to the Altinget.

/ritzau/

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https://www.doi.dk/en/solenergi/artikel/miljoeoekonomisk-vismand-anbefaler-hoejere-afgift-paa-elbiler

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