A government trying to achieve GHG reductions in its entire economy may implement a carbon tax in conjunction with complementary policies. Taxes can be an attractive option for addressing emissions that might be difficult to regulate through other mechanisms such as cap and trade or command and control regulation. For example, Norway’s carbon tax covers about 68% of CO2 emissions, which represents more than half of its total GHG emissions. By comparison, Norway’s participation in the EU’s Emission Trading Scheme (ETS) covers 35%-40% of its GHG emissions (Ministry of the Environment, Norway 2008). In addition to its carbon tax, Norway implemented a tax on the import and production of other GHGs including HFCs and PFCs, which have high global warming rate potentials. Emissions from these sources are expected to be cut in half because of this tax (Ministry of the Environment, Norway 2005b).