Database Specific
Database Specific Abstract AbstractCompanion dataset to Effective Carbon Rates (ECR).
ECRs measures carbon pricing of CO2-emissions from energy use in 44 OECD and G20 countries, covering 80% of world emissions. The dataset provides a comprehensive view on carbon pricing, including fuel excise taxes, carbon taxes and tradable emission permit prices.
For additional information, see Effective Carbon Rates 2021.
Annex A of the first publication of Effective Carbon Rates (OECD, 2016) provides a detailed description of the methodology for calculating ECRs.
Source Source Contact person/organisation Contact person/organisationCTP/TPS Tax and Environment Unit
Date last input received Date last input receivedThe data for ECR was processed in Q1 of 2021.
Data source(s) used Data source(s) usedEnergy use data from IEA (2020), World Energy Statistics and Balances
IPCC emission factors
Emission coverage from Emission Trading System (ETS) registries
Effective carbon tax rates from OECD (2019), Taxing Energy Use
Emission permit prices from Energy Exchanges, ETS registries and the ICAP Carbon Price Viewer
Data Characteristics Data Characteristics Base period Base periodFor comparing across time and countries, effective carbon rates have been converted to 2018 prices using OECD inflation data and exchange rates. Tax rates, permit prices and CO2 emissions refer to the same base year.
Contact person Contact person Date last updated Date last updated21-01-2021
Unit of measure used Unit of measure usedPercent
Population & Scope Population & Scope Geographic coverage Geographic coverageOECD and G20 excluding the Kingdom of Saudi Arabia.
In order to facilitate analysis and comparisons over time, historical data for OECD members have been provided over as long a period as possible, often even before a country became a member of the Organisation. Information on the membership dates of all OECD countries can be found at OECD Ratification Dates.
Other coverage Other coverageThe criteria for defining whether a certain tax or tradeable carbon permit is part of the ECR is whether its base is directly physically proportional to CO2 emissions (e.g., litres of diesel, or tonnes of coal) or not (e.g. kWh of electricity used). Only those taxes and permits that are directly physically proportional to CO2 emissions are part of the ECR, irrespective of the policy objectives for their introduction.
Product coverage Product coverageThe Effective Carbon Rates database reports results including emissions from the combustion of biomass as well as results excluding emissions from the combustion of biomass. Annex 3.A of Effective Carbon Rates 2018 discusses the implications of the combustion approach and considers evidence on lifecycle emissions of biofuels. It also discusses why emission bases from Effective Carbon Rates are not directly comparable with UNFCCC inventories.
Sector coverage Sector coverageThe Effective Carbon Rates database shows ECRs for six economic sectors, namely: Road, Off-Road, Industry, Agriculture and Fisheries, Residential & Commercial, Electricity
Concepts & Classifications Concepts & Classifications Key statistical concept Key statistical conceptThe Effective Carbon Rate (ECR) is the sum of taxes and tradeable permits that effectively put a price on carbon emissions. More precisely, the ECR consists of three components of the ECR – fuel excise taxes, carbon taxes and tradeable carbon emission permits.
The carbon pricing score answers the question how close countries are to price carbon in line with carbon costs.
EUR 60 per tonne of CO2 is a midpoint estimate for carbon costs in 2020, and a low-end estimate for 2030. Pricing all emissions at least at EUR 60 in 2020 shows that a country is on a good track to reach the goals of the Paris Agreement to decarbonise by mid-century economically. EUR 30 is a historic low-end estimate for carbon costs, and EUR 120 is a midrange estimate for carbon costs in 2030.
The share of emissions priced above EUR Y per tonne of CO2 shows the share of emissions within a country or sector with a carbon price that exceed EUR Y in percent.
Other Aspects Other Aspects Other comments Other commentsWhen explaining differences in the indicators over time, one should account for changes: i) in tax rates (and related exemptions and refunds) as well as ETS permit prices ii) in exchange rates and inflation iii) related to the emissions base stemming from changes in energy demand, fuel mix, calorific values, product reclassifications, to which sectors with smaller support are particularly sensitive.
Recommended uses and limitations Recommended uses and limitationsThe direct physical proportionality of the tax or permit base to CO2 has an important economic implication: Each component of the ECR makes low- and zero- carbon energy more competitive by increasing the price of high-carbon alternatives, encouraging energy users to curtail their use of high carbon energy and switch to low- or zero-carbon options. In other words, the ECR is a comprehensive indicator of existing prices on carbon emissions.
Companion dataset to Effective Carbon Rates (ECR).
ECRs measures carbon pricing of CO2-emissions from energy use in 44 OECD and G20 countries, covering 80% of world emissions. The dataset provides a comprehensive view on carbon pricing, including fuel excise taxes, carbon taxes and tradable emission permit prices.
For additional information, see Effective Carbon Rates 2021.
Annex A of the first publication of Effective Carbon Rates (OECD, 2016) provides a detailed description of the methodology for calculating ECRs.
CTP/TPS Tax and Environment Unit
Energy use data from IEA (2020), World Energy Statistics and Balances
IPCC emission factors
Emission coverage from Emission Trading System (ETS) registries
Effective carbon tax rates from OECD (2019), Taxing Energy Use
Emission permit prices from Energy Exchanges, ETS registries and the ICAP Carbon Price Viewer
The data for ECR was processed in Q1 of 2021.
Percent
For comparing across time and countries, effective carbon rates have been converted to 2018 prices using OECD inflation data and exchange rates. Tax rates, permit prices and CO2 emissions refer to the same base year.
21-01-2021
OECD and G20 excluding the Kingdom of Saudi Arabia.
In order to facilitate analysis and comparisons over time, historical data for OECD members have been provided over as long a period as possible, often even before a country became a member of the Organisation. Information on the membership dates of all OECD countries can be found at OECD Ratification Dates.
The Effective Carbon Rates database shows ECRs for six economic sectors, namely: Road, Off-Road, Industry, Agriculture and Fisheries, Residential & Commercial, Electricity
The Effective Carbon Rates database reports results including emissions from the combustion of biomass as well as results excluding emissions from the combustion of biomass. Annex 3.A of Effective Carbon Rates 2018 discusses the implications of the combustion approach and considers evidence on lifecycle emissions of biofuels. It also discusses why emission bases from Effective Carbon Rates are not directly comparable with UNFCCC inventories.
The criteria for defining whether a certain tax or tradeable carbon permit is part of the ECR is whether its base is directly physically proportional to CO2 emissions (e.g., litres of diesel, or tonnes of coal) or not (e.g. kWh of electricity used). Only those taxes and permits that are directly physically proportional to CO2 emissions are part of the ECR, irrespective of the policy objectives for their introduction.
The Effective Carbon Rate (ECR) is the sum of taxes and tradeable permits that effectively put a price on carbon emissions. More precisely, the ECR consists of three components of the ECR – fuel excise taxes, carbon taxes and tradeable carbon emission permits.
The carbon pricing score answers the question how close countries are to price carbon in line with carbon costs.
EUR 60 per tonne of CO2 is a midpoint estimate for carbon costs in 2020, and a low-end estimate for 2030. Pricing all emissions at least at EUR 60 in 2020 shows that a country is on a good track to reach the goals of the Paris Agreement to decarbonise by mid-century economically. EUR 30 is a historic low-end estimate for carbon costs, and EUR 120 is a midrange estimate for carbon costs in 2030.
The share of emissions priced above EUR Y per tonne of CO2 shows the share of emissions within a country or sector with a carbon price that exceed EUR Y in percent.
The direct physical proportionality of the tax or permit base to CO2 has an important economic implication: Each component of the ECR makes low- and zero- carbon energy more competitive by increasing the price of high-carbon alternatives, encouraging energy users to curtail their use of high carbon energy and switch to low- or zero-carbon options. In other words, the ECR is a comprehensive indicator of existing prices on carbon emissions.
When explaining differences in the indicators over time, one should account for changes: i) in tax rates (and related exemptions and refunds) as well as ETS permit prices ii) in exchange rates and inflation iii) related to the emissions base stemming from changes in energy demand, fuel mix, calorific values, product reclassifications, to which sectors with smaller support are particularly sensitive.