Data

Emissions-weighted carbon price in emissions trading systems

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What you should know about this indicator

  • This data primarily focuses on economic instruments targeting carbon dioxide (CO₂) emissions.
  • In some cases these instruments also cover other greenhouse gases. However, any pricing mechanisms that specifically target non-CO₂ gases (such as methane or nitrous oxide) are not included.
  • A country is considered to have a carbon tax or emissions trading system if at least one IPCC sector or gas is covered by the instrument. These instruments do not need to cover all sectors within the economy for this to apply.
  • Only countries with a carbon tax at the national level are included.
  • For each country, researchers calculate an emissions-weighted carbon price for the economy. To do this, they rely on two metrics:
    • Carbon prices applied at the sectoral level (e.g. electricity, or road transport).
    • Each sector's contribution to a country's CO₂ emissions (e.g. what percentage of a country's emissions come from electricity, or road transport). They then weight each sector's carbon price by the relevant sector's contribution to CO₂ emissions, and aggregate these figures to get an economy-wide weighted carbon price.
  • A full technical note on the methodology is provided by the authors in this report.
Emissions-weighted carbon price in emissions trading systems
This data is expressed in US dollars. It is adjusted for inflation but does not account for differences in the cost of living between countries.
Source
Dolphin and Xiahou (2022) – with minor processing by Our World in Data
Last updated
October 19, 2023
Next expected update
October 2024
Date range
1989–2021
Unit
constant 2019 US$ per tonne of CO₂ equivalents

Sources and processing

This data is based on the following sources

The Emissions-weighted Carbon Price (ECP) is an economy-wide average price on CO₂ emissions. It is calculated from sector-fuel level data, which is aggregated back to the economy level using the share of each sector-fuel CO₂ emissions in total GHG emissions as weights. The full methodology is described in the Resources for the Future Working Paper 22-6 Emissions-weighted carbon price: Sources and Methods.

Retrieved on
October 19, 2023
Citation
This is the citation of the original data obtained from the source, prior to any processing or adaptation by Our World in Data. To cite data downloaded from this page, please use the suggested citation given in Reuse This Work below.
Dolphin, G., Pollitt, M. and Newbery, D. 2020. The political economy of carbon pricing: a panel analysis. Oxford Economic Papers 72(2): 472-500.
Dolphin, G., Xiahou, Q. World carbon pricing database: sources and methods. Sci Data 9, 573 (2022). The article is available in Open Access at https://doi.org/10.1038/s41597-022-01659-x.
Supported by Resources for the Future.

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All data and visualizations on Our World in Data rely on data sourced from one or several original data providers. Preparing this original data involves several processing steps. Depending on the data, this can include standardizing country names and world region definitions, converting units, calculating derived indicators such as per capita measures, as well as adding or adapting metadata such as the name or the description given to an indicator.

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  • All data produced by third-party providers and made available by Our World in Data are subject to the license terms from the original providers. Our work would not be possible without the data providers we rely on, so we ask you to always cite them appropriately (see below). This is crucial to allow data providers to continue doing their work, enhancing, maintaining and updating valuable data.
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Citations

How to cite this page

To cite this page overall, including any descriptions, FAQs or explanations of the data authored by Our World in Data, please use the following citation:

“Data Page: Emissions-weighted carbon price in emissions trading systems”, part of the following publication: Hannah Ritchie, Pablo Rosado and Max Roser (2023) - “CO₂ and Greenhouse Gas Emissions”. Data adapted from Resources for the Future. Retrieved from https://ourworldindata.org/grapher/weighted-carbon-price-ets [online resource]
How to cite this data

In-line citationIf you have limited space (e.g. in data visualizations), you can use this abbreviated in-line citation:

Dolphin and Xiahou (2022) – with minor processing by Our World in Data

Full citation

Dolphin and Xiahou (2022) – with minor processing by Our World in Data. “Emissions-weighted carbon price in emissions trading systems” [dataset]. Resources for the Future, “Emissions-weighted Carbon Price” [original data]. Retrieved June 18, 2024 from https://ourworldindata.org/grapher/weighted-carbon-price-ets