Oslo, Norway has the highest amount of Teslas per capita compared to anywhere on the planet. Although it is more expensive to import American brand Tesla cars into the Scandinavian country there is a huge fan following there as the government has created extremely generous incentives for switching and maintaining an electric car rather than a petrol or diesel one.
Despite being a small country of only 5 million people, Norwegian sales data indicate that a third of all new cars purchased are either fully electric or plug-in hybrid vehicles, with the former being even more popular. The rate of adoption is nearly 10 times larger than that in America and by 2025 the government assumes there will no gas or diesel cars sold at all.
Just how can Norwegians afford to buy so many relatively expensive Teslas? Government subsidization and tax incentives allow electric vehicles like the 90k or more Tesla to become a bargain deal. All electric vehicles are exempt from car-purchase tax, 25% sales tax on all products if you are an electric car owner, and a break on annual car fees. Simply said shopping in general and all major purchases related to the car become cheaper.
Furthermore, drivers offer grand perks and benefits on a day to day bases, eliminating many costs associated with owning a car especially if you live in the city. Drivers can plug into charge their vehicles for free at any municipal power point which are conveniently located and distributed generously across and within cities. They do not have to pay tolls while driving on expressways or when traveling within the country nor do they have to use regular and crowded car lanes, as they are allowed to drive in bus lanes. Water transportation of a car by a ferry is free if you have an electric car. This wide array of benefits allow for the Tesla or any other electric vehicle like the Nissan Leaf to be a clear choice for most Norwegians as down the road there is a solid return on their investment.
Even still Norwegians (who are relatively wealthy in general) value the environment and enjoy being a conscious consumer who constantly practices methods that can better the environment and reduce carbon output. Additionally, the country has been tasked with reducing their carbon footprint by 30% in the next 3 years and eliminating a third of all gas/diesel cars is a hugely significant step in the right direction.
Yet, at the end of the day there is one a dark and dirty secret that allows the country to afford all of these Teslas. That is the monumental sovereign wealth fund which is largely comprised of oil money and money that is earned through non-environmentally friendly mechanisms and manners.
This wealth fund (the largest of its kind in the world) is essentially surplus money derived from taxes on oil companies and its sales, licenses to export and import oil, as well as dividends from the state-owned Statoil company that must be invested back into the country. Due to its large size of over $1 trillion the fund is able to create several programs like that for electric vehicles.
In closing, Norway has made great improvements to move towards a greener planet. Even if it uses “dirty” oil money, it is still making improvements that result in net benefits.
