There’s different ways to measure one’s standard of living. Working 40 hours a week and having a larger home, nicer car, and more wealth than others could denote a high living standard. Likewise, so could having access to education and health services.

In Norway, an auto enthusiast might be miserable because of brutally high taxes.

Gasoline costs the equivalent of $6.60 per gallon as of 2005, with two thirds of that price directly attributed to fuel taxes. Prices for 2011 exceed $8.30/gallon.

A pint of beer exceeds $12 and a frozen pizza $16, but consider that the average Norwegian earns a decent living, over $51,000 per year. Car ownership in Norway is entirely optional thanks to thorough and functional public transportation.

Bigger engines are taxed heavily.
Trucks and SUVs are taxed heavily.
Vehicle registration costs hundreds per year.
Vehicles are taxed with VAT included, resulting in double taxation.

Vehicle ownership is typically limited to those with higher incomes, considered a bit of a luxury. Public transportation is used for commuting while vehicles are reserved for shopping, travel, and leisure.

Americans drive 12,000 miles per year, on average, which includes daily commuting. If our automobile travel was limited only to weekends, we might drive 50 miles a week, which comes to 2,600 miles per year.

Let’s assume, then, that Norwegians drive 2,600 miles per year (I couldn’t find any statistics). Let’s also assume that average fuel economy is 47% higher for Norway.

Its unwise to generate results based on input data that isn’t entirely accurate, so don’t use this blog article as a source for your college research paper. Now let’s play with the numbers.

American annual fuel cost:
$3.30/gallon, 12,000 miles per year, 23mpg:
$1721.74

Norwegian annual fuel cost:
$8.30/gallon, 2,600 miles per year, 34mpg:
$634.71

[Again, these are loosely accurate numbers intended to demonstrate the potential cost difference.]

With a European diesel hatchback, one could expect more than 50mpg, but bus and train fares could exceed $1200 per year. It ends up being a wash, though you won’t have to change the oil or replace any parts on a bus.

Because Norway has little in the way of domestic manufacturing, most vehicles are imported from the UK, Sweden, Finland, France, and Japan, and each imported vehicle is heavily taxed.

New Car Prices, Norway vs USA:

Jaguar XF:

$52,500 in USA
$182,500 in Norway

Saab 9-5:

$49,565 in USA
$124,600 in Norway

Mazda Miata:

$23,110 in USA
$54,100 in Norway

Simply put, its expensive to live there, even for Norwegians. I have nothing against the people of Norway or their notions of egalitarian utopia, but I’ll stay here.