An examination of five Norwegian companies’ decisions to locate/relocate reveals that the new locations are in accordance with policy objectives of reduced car commuting and related environmental improvements. Still, most companies ended up with new locations that increase car commuting significantly, compared both to the situation before relocation and to the alternative location that was eliminated only at the last stage in the selection process. This paradox may be explained by a double policy failure: First, current policy instruments are not oriented towards the parameters that companies themselves consider as key selection criteria for office location. Second, policy instruments do not adequately address factors that determine the share of car commuting for a given location.
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