Publication:
Measuring Total Carbon Pricing

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dc.contributor.authorAgnolucci, Paolo
dc.contributor.authorFischer, Carolyn
dc.contributor.authorHeine, Dirk
dc.contributor.authorMontes De Oca Leon, Mariza
dc.contributor.authorPryor, Joseph
dc.contributor.authorPatroni, Kathleen
dc.contributor.authorHallegatte, Stephane
dc.date.accessioned2023-07-11T16:36:10Z
dc.date.available2023-07-11T16:36:10Z
dc.date.issued2023-07-11
dc.description.abstractWhile 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 This paper develops a methodology for calculating a total carbon price applied to carbon emissions in a sector, fuel, or the whole economy. It recognizes 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 one for 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 a 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.en
dc.identifierhttp://documents.worldbank.org/curated/en/099548206152339098/IDU124d2b624145531468a1a4d418173bf51a4fd
dc.identifier.doi10.1596/1813-9450-10486
dc.identifier.urihttps://openknowledge.worldbank.org/handle/10986/39976
dc.languageEnglish
dc.language.isoen
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Papers; 10486
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttps://creativecommons.org/licenses/by/3.0/igo/
dc.subjectCLIMATE CHANGE
dc.subjectEMISSIONS TRADING
dc.subjectCARBON TAX
dc.subjectFISCAL INSTRUMENT
dc.subjectFUEL SUBSIDIES
dc.subjectGREENHOUSE GAS EMISSION PRICES
dc.subjectCARBON MITIGATION
dc.subjectTOTAL CARBON PRICE
dc.subjectFOSSIL FUEL TRANSITION
dc.subjectSUSTAINABLE DEVELOPMENT
dc.titleMeasuring Total Carbon Pricingen
dc.typeWorking Paper
dspace.entity.typePublication
okr.crossref.titleMeasuring Total Carbon Pricing
okr.date.disclosure2023-06-15
okr.date.lastmodified2023-06-15T00:00:00Zen
okr.doctypePolicy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/099548206152339098/IDU124d2b624145531468a1a4d418173bf51a4fd
okr.guid099548206152339098
okr.identifier.docmidIDU-24d2b624-4553-468a-a4d4-8173bf51a4fd
okr.identifier.doi10.1596/1813-9450-10486
okr.identifier.doihttp://dx.doi.org/10.1596/1813-9450-10486
okr.identifier.externaldocumentum34094362
okr.identifier.internaldocumentum34094362
okr.identifier.reportWPS10486
okr.import.id1035
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/099548206152339098/pdf/IDU124d2b624145531468a1a4d418173bf51a4fd.pdfen
okr.sectorOther Energy and Extractives
okr.themeClimate change,Mitigation,Energy,Energy Policies & Reform,Environment and Natural Resource Management
okr.topicMacroeconomics and Economic Growth::Climate Change Economics
okr.topicEnvironment::Adaptation to Climate Change
okr.topicEnvironment::Carbon Policy and Trading
okr.unitGGS-CCG-Finance & Economics Unit (SCCFE)
okr.unitProspects Group (DECPG)
okr.unitDEC-Sustainability & Infrastruct (DECSI)
okr.unitEFI-MTI-Macro/Fiscal-Tax (EMFTX)
okr.unitGGSVP-VP
okr.unitSD Practice Group
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