Publications

Effective Carbon Rates

Pricing CO2 through Taxes and Emissions Trading Systems

Published on September 26, 2016

book

To tackle climate change, CO2 emissions need to be cut. Pricing carbon is one of the most effective and lowest-cost ways of inducing such cuts. This report presents the first full analysis of the use of carbon pricing on energy in 41 OECD and G20 economies, covering 80% of global energy use and of CO2 emissions. The analysis takes a comprehensive view of carbon prices, including specific taxes on energy use, carbon taxes and tradable emission permit prices. It shows the entire distribution of effective carbon rates by country and the composition of effective carbon rates by six economic sectors within each country. Carbon prices are seen to be often very low, but some countries price significant shares of their carbon emissions. The ‘carbon pricing gap’, a synthetic indicator showing the extent to which effective carbon rates fall short of pricing emissions at EUR 30 per tonne, the low-end estimate of the cost of carbon used in this study, sheds light on potential ways of strengthening carbon pricing.

TABLE OF CONTENTS

Foreword and acknowledgements
Executive summary
Reader's guide
Effective carbon rates in OECD and selected partner economies5 chapters available
Effective carbon rates: An introduction and main results
Carbon pricing: Reducing emissions in a cost-effective manner
Effective carbon rates: Concept and scope
Effective carbon rates: Results of the analysis
Effective carbon rates: Summary and conclusions
Country results42 chapters available
Effective carbon rates across 41 countries and on a country-by-country basis
Argentina
Australia
Austria
Belgium
Brazil
Canada
Chile
People's Republic of China
Czech Republic
Denmark
Estonia
Finland
France
Germany
Greece
Hungary
Iceland
India
Indonesia
Ireland
Israel
Italy
Japan
Korea
Luxembourg
Mexico
Netherlands
New Zealand
Norway
Poland
Portugal
Russian Federation
Slovak Republic
Slovenia
South Africa
Spain
Sweden
Switzerland
Turkey
United Kingdom
United States
Annexes2 chapters available
Estimating effective carbon rates
Description of emissions trading systems and results
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highlights

 

Country PROFILES

| Argentina | Australia | Austria | Belgium | Canada | Chile | China |  Czech Republic | Denmark | Estonia | Finland | France | Germany | Greece | Hungary | Iceland | India | Indonesia | Ireland | Israel | Italy | Japan | Korea | Luxembourg | Mexico | Netherlands | New Zealand | Norway | Poland | Portugal | Russia | Slovak Republic | Slovenia | South Africa | Spain | Sweden | Switzerland | Turkey | United Kingdom | United States |

 

webcast: OECD GREEN TALKS 

MIND THE GAP... MEASURING THE CARBON PRICING SHORTFALL

90% of emissions from energy use are priced at less than EUR 30 per tonne, a lower-end estimate of the damage from emitting 1 tone of CO2 and 60% of emissions are subject to no price whatsoever. We are making poor use of carbon pricing, a acost-effective means of reducing CO2 emissions

OECD Environment Director, Simon Upton, hosts Kurt van Dender, OECD environmental tax policy expert from the Centre for Tax Policy and Administration to discuss the OECD's forthcoming publication on effective carbon rates - a new, combined measure of the extent to which countries use taxes and emissions trading systems to price carbon, and to introduce the carbon pricing gap.

» Watch the replay 

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