Measuring Total Carbon Pricing
While countries increasingly commit to pricing greenhouse gases directly through carbon taxes or emissions trading systems, indirect forms of carbon pricing - such as fuel excise taxes and fuel subsidy reforms - remain important factors affecting the mitigation incentives in an economy. Taken together, how can policy makers think about the overall price signal for carbon emissions and the incentive it creates We develop a methodology for calculating a total carbon price applied to carbon emissions in a sector, a fuel, or the whole economy. We recognize that rarely is a single carbon price applied across an economy; many direct carbon pricing instruments target specific sectors or even fuels, much like indirect taxes on fossil fuels; and carbon and fuel taxes can be substituted for one another. Tracking progress on carbon pricing thus requires following both kinds of price interventions, their coverage, and specific exemptions. This inclusive total carbon pricing measure can facilitate progress in discussions on minimum carbon price commitments and inform assessments of the pricing of carbon embodied in traded goods. Calculations across 142 countries from 1991 to 2021 indicate that although direct carbon pricing now covers roughly one-quarter of global emissions, the global total carbon price is not that much higher than it was in 1994 when the United Nations Framework Convention on Climate Change entered into force. Indirect carbon pricing still comprises the lion's share of the global total carbon price, and it has stagnated. Taking these policy measures into account reveals that many developing countries - particularly net fuel importers - contribute substantially to global carbon pricing. Tackling fuel subsidy reform and pricing coal and natural gas emissions more fully would have a profound effect on aligning carbon prices across countries and sectors and with their climate costs.
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Format: | Journal Article biblioteca |
Language: | English en_US |
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Published by Oxford University Press on behalf of the World Bank
2023-09-27
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Subjects: | REDISTRIBUTIVE EFFECTS, ENVIRONMENTAL TAXES AND SUBSIDIES, GOVERNMENT POLICY, LIFE ON LAND, SDG 15, PEACE, JUSTICE AND STRONG INSTITUTIONS, |
Online Access: | http://documents.worldbank.org/curated/en/099629307192420510/IDU19f28410d15003143dc19c2814b8be2ca21ea https://hdl.handle.net/10986/41936 |
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dig-okr-10986419362024-07-25T20:34:31Z Measuring Total Carbon Pricing Agnolucci, Paolo Fischer, Carolyn Heine, Dirk Montes de Oca Leon, Mariza Pryor, Joseph Patroni, Kathleen Hallegatte, Stéphane REDISTRIBUTIVE EFFECTS ENVIRONMENTAL TAXES AND SUBSIDIES GOVERNMENT POLICY LIFE ON LAND SDG 15 PEACE, JUSTICE AND STRONG INSTITUTIONS While countries increasingly commit to pricing greenhouse gases directly through carbon taxes or emissions trading systems, indirect forms of carbon pricing - such as fuel excise taxes and fuel subsidy reforms - remain important factors affecting the mitigation incentives in an economy. Taken together, how can policy makers think about the overall price signal for carbon emissions and the incentive it creates We develop a methodology for calculating a total carbon price applied to carbon emissions in a sector, a fuel, or the whole economy. We recognize that rarely is a single carbon price applied across an economy; many direct carbon pricing instruments target specific sectors or even fuels, much like indirect taxes on fossil fuels; and carbon and fuel taxes can be substituted for one another. Tracking progress on carbon pricing thus requires following both kinds of price interventions, their coverage, and specific exemptions. This inclusive total carbon pricing measure can facilitate progress in discussions on minimum carbon price commitments and inform assessments of the pricing of carbon embodied in traded goods. Calculations across 142 countries from 1991 to 2021 indicate that although direct carbon pricing now covers roughly one-quarter of global emissions, the global total carbon price is not that much higher than it was in 1994 when the United Nations Framework Convention on Climate Change entered into force. Indirect carbon pricing still comprises the lion's share of the global total carbon price, and it has stagnated. Taking these policy measures into account reveals that many developing countries - particularly net fuel importers - contribute substantially to global carbon pricing. Tackling fuel subsidy reform and pricing coal and natural gas emissions more fully would have a profound effect on aligning carbon prices across countries and sectors and with their climate costs. 2024-07-23T19:27:28Z 2024-07-23T19:27:28Z 2023-09-27 Journal Article http://documents.worldbank.org/curated/en/099629307192420510/IDU19f28410d15003143dc19c2814b8be2ca21ea The World Bank Research Observer 0257-3032 (print) 1564-6971 (online) https://hdl.handle.net/10986/41936 English en_US World Bank Research Observer World Bank Research Observer CC BY-NC-ND 3.0 IGO https://creativecommons.org/licenses/by-nc-nd/3.0/igo/ World Bank application/pdf text/plain Published by Oxford University Press on behalf of the World Bank |
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English en_US |
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REDISTRIBUTIVE EFFECTS ENVIRONMENTAL TAXES AND SUBSIDIES GOVERNMENT POLICY LIFE ON LAND SDG 15 PEACE, JUSTICE AND STRONG INSTITUTIONS REDISTRIBUTIVE EFFECTS ENVIRONMENTAL TAXES AND SUBSIDIES GOVERNMENT POLICY LIFE ON LAND SDG 15 PEACE, JUSTICE AND STRONG INSTITUTIONS |
spellingShingle |
REDISTRIBUTIVE EFFECTS ENVIRONMENTAL TAXES AND SUBSIDIES GOVERNMENT POLICY LIFE ON LAND SDG 15 PEACE, JUSTICE AND STRONG INSTITUTIONS REDISTRIBUTIVE EFFECTS ENVIRONMENTAL TAXES AND SUBSIDIES GOVERNMENT POLICY LIFE ON LAND SDG 15 PEACE, JUSTICE AND STRONG INSTITUTIONS Agnolucci, Paolo Fischer, Carolyn Heine, Dirk Montes de Oca Leon, Mariza Pryor, Joseph Patroni, Kathleen Hallegatte, Stéphane Measuring Total Carbon Pricing |
description |
While countries increasingly commit
to pricing greenhouse gases directly through carbon taxes or
emissions trading systems, indirect forms of carbon pricing
- such as fuel excise taxes and fuel subsidy reforms -
remain important factors affecting the mitigation incentives
in an economy. Taken together, how can policy makers think
about the overall price signal for carbon emissions and the
incentive it creates We develop a methodology for
calculating a total carbon price applied to carbon emissions
in a sector, a fuel, or the whole economy. We recognize that
rarely is a single carbon price applied across an economy;
many direct carbon pricing instruments target specific
sectors or even fuels, much like indirect taxes on fossil
fuels; and carbon and fuel taxes can be substituted for one
another. Tracking progress on carbon pricing thus requires
following both kinds of price interventions, their coverage,
and specific exemptions. This inclusive total carbon pricing
measure can facilitate progress in discussions on minimum
carbon price commitments and inform assessments of the
pricing of carbon embodied in traded goods. Calculations
across 142 countries from 1991 to 2021 indicate that
although direct carbon pricing now covers roughly
one-quarter of global emissions, the global total carbon
price is not that much higher than it was in 1994 when the
United Nations Framework Convention on Climate Change
entered into force. Indirect carbon pricing still comprises
the lion's share of the global total carbon price, and
it has stagnated. Taking these policy measures into account
reveals that many developing countries - particularly net
fuel importers - contribute substantially to global carbon
pricing. Tackling fuel subsidy reform and pricing coal and
natural gas emissions more fully would have a profound
effect on aligning carbon prices across countries and
sectors and with their climate costs. |
format |
Journal Article |
topic_facet |
REDISTRIBUTIVE EFFECTS ENVIRONMENTAL TAXES AND SUBSIDIES GOVERNMENT POLICY LIFE ON LAND SDG 15 PEACE, JUSTICE AND STRONG INSTITUTIONS |
author |
Agnolucci, Paolo Fischer, Carolyn Heine, Dirk Montes de Oca Leon, Mariza Pryor, Joseph Patroni, Kathleen Hallegatte, Stéphane |
author_facet |
Agnolucci, Paolo Fischer, Carolyn Heine, Dirk Montes de Oca Leon, Mariza Pryor, Joseph Patroni, Kathleen Hallegatte, Stéphane |
author_sort |
Agnolucci, Paolo |
title |
Measuring Total Carbon Pricing |
title_short |
Measuring Total Carbon Pricing |
title_full |
Measuring Total Carbon Pricing |
title_fullStr |
Measuring Total Carbon Pricing |
title_full_unstemmed |
Measuring Total Carbon Pricing |
title_sort |
measuring total carbon pricing |
publisher |
Published by Oxford University Press on behalf of the World Bank |
publishDate |
2023-09-27 |
url |
http://documents.worldbank.org/curated/en/099629307192420510/IDU19f28410d15003143dc19c2814b8be2ca21ea https://hdl.handle.net/10986/41936 |
work_keys_str_mv |
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