The development of the Danish and Norwegian electric vehicle (EV) markets and deployed policy support mechanisms clearly illustrate the positive correlation among the magnitude of purchase incentives and diffusion of electric vehicles. This paper highlights the repercussions of retracting tax exemptions for EVs by investigating the Danish market diffusion since a progressive taxation scheme taking effect in January 2016 was enacted. In addition to Denmark, the paper evaluates the effects of diverse purchase incentives within the Norwegian EV market, which has reached a new plateau of maturity. The results indicate that financial incentives, with the current technological advances, are required for stimulating EV uptake, as Danish EV sales have plummeted with the introduction of registration tax. However, as the EV market matures, the effects of some policy support mechanisms decrease.
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