Table of content ___________________________________________________________________________________________________I
The government role _____________________________________________________________________________________________2
Market failure ______________________________________________________________________________________________________3
Positive and Negative Externalities________________________________________________________________________________4
In the past decades, governments around the world have been worried about the ecological system health. And since the Electric Vehicles (EVs) are providing a greener form of transportation. The fact of motivating people to start buying and using the EVs was concerning most of the western world governments. Although the EVs delivers many benefits to the society, but it didn’t have the customers’ acceptance in many places in the world, because of the higher price, less infrastructure support and the limited travel distance (Vaughan 2017). Therefore, their sales around the world has been very low. However, in Norway The scenario was totally different from anywhere else in the world. Norway now is one of the countries who have the highest number of electronic cars in the world. The numbers of EVs is almost doubling every year since 2012, and it is expected to continue as long as the government continue to encourage and support the use of EVs (Aasness & Odeck 2015) with the generous intervention policies undertaken by the Norwegian government to embrace the use of EVs for a better impact of the social welfare (Vaughan 2017).
The government role
In the early stages, the Norwegian government was giving a little support to the Norwegian firms who were working on developing vehicles work on the power of electricity, because there was a strong need to find a transportation fuel substitutes in 1973 as the oil blockage cut off the oil supply in the western countries resulting higher oil prices (Figenbaum & Kolbenstvedt 2013). Nevertheless, the absence of the government intermediation led the companies to go bankrupt even before moving to the large scale of production, then Norway missed the golden chance to lead the world with the EV industry (Fearnley et al. 2015). Correspondingly, in the next stages, the government did not show any increasing support in improving the EVs market in Norway. Correspondingly, it insisted on rejecting to exempt the electric vehicles from the expensive tax on vehicle registration and therefore, the price of EVs went so high and mad it almost impossible to purchase an electric car in Norway. Finally,...