Carbon pricing index
This work is based on the State and Trends of Carbon Pricing Dashboard, an interactive online tool aimed at policymakers, businesses, and researchers developped by the World Bank. It provides the latest information on existing and emerging direct carbon pricing initiatives around the world.
The Pladifes project used some of its data to feed its COGEM (COrporate GHG EMission estimation) project. To be able to compare countries on a relevant basis, the team developped a methodology to construct a "carbon pricing index", based on both the prices and coverages of the several kinds of existing carbon pricing instruments around the world.
As this work is mostly based on the State and Trends of Carbon Pricing Dashboard, the final data quality depends on this source. A limitation is that the carbon prices are nominal prices as at April 1 of the relevant year. These are generally based on the exchange-traded, auction or government-set prices of April 1, or the most recent prices available. Thus, a country implementing a new instrument between April and December of year n would see it appear only in year n+1.
Carbon pricing index Data
Thus, the Pladifes Team considered there was value in creating and sharing a preprocessed version of the carbon pricing data, focused on easing the countries comparison. The methodology involves creating a new data: a "carbon pricing index", per country and per year, based on a sumproduct between prices and coverages. The full methodology is described in a pdf, accessible below.
Users are required to cite as follows: "Work based on Carbon pricing index data, shared by the EquipEx Pladifes (ANR-21-ESRE-0036) and hosted at the Institut Louis Bachelier".