Economic impacts of reducing NOx emissions in Norway

Using a multisector computable general equilibrium model for the Norwegian economy, the impacts on main macroeconomic indicators of reducing NOx emissions are analyzed. Seven specific technical measures regarding passenger cars, trucks, ships and industrial processes are studied. The measures have somewhat different impacts on the macroeconomy. Especially the measure pertaining to light and heavy duty trucks leads to an increase in GDP, because of higher income from indirect taxes. However, the sum of value added in the production sectors is reduced. The other measures cause a decrease in GDP. All in all, it is found that the costs, in terms of reductions in GDP and private consumption, incurred from the introduction of additional NOx emissions control measures are quite small. 1 fig., 2 tabs., 6 refs