Subsidy and energy tax dataset

The subsidy-tax dataset aims to enable IAM teams to better calibrate end-use fuel prices to real-world values and depict energy tax rates and fossil fuel subsidies.

Input data

ADVANCE_Price_Tax_Subsidy_data

Compilation of average sectoral/fuel energy prices from 2006-2010
ADVANCE_Price_Tax_Subsidy_Data.xlsx → worksheet: prices

Compilation of most recent tax rate (2012 or most recent year)
ADVANCE_Price_Tax_Subsidy_Data.xlsx → worksheet: taxes

Compilation of most recent subsidy amount (2013 or most recent year)
ADVANCE_Price_Tax_Subsidy_Data.xlsx → worksheet: subsidies

The data set contains three elements.

  1. The prices set is a compilation of average prices (2006-2010) of natural gas, oil, coal and electricity for residential/commercial and industry and for oil used in transport. Data were compiled from the IEA, Enerdata, and various national sources (see first publication for more details). Note that the price for oil in the Residential and Commercial sector is primarily related to home heating oil and kerosene.
  2. The taxes set of is a compilation of tax rates on natural gas, oil, coal and electricity used in residential/commercial and industry as well as for oil products used in transport. Data include the most recent tax data which was available when we were developing this dataset. In general, they represent 2012 rates. Data were compiled from the IEA, Enerdata, and various national sources (see first publication for more details). For OECD countries which reported energy tax rebates and exemptions as fossil fuel subsidies in the OECD Inventory of Estimated Budgetary Support and Tax Expenditures for Fossil Fuels 2013, these data are aggregated into the subsidies set and reported as subsidy rates (see section 3). Note that this does not include tax write-offs of energy costs for commercial and industrial users such as diesel costs for shipping companies.
  3. The subsidies set of is a compilation of fossil fuel energy subsidies on natural gas, oil, coal and electricity. Data include the most recent tax data which was available when we were developing this dataset. In general, they represent 2013 values. Data were compiled from the IEA and the OECD Inventory of Estimated Budgetary Support and Tax Expenditures for Fossil Fuels 2013. Subsidies in OECD countries are often from reduced taxes for certain user groups. In our data set, they are aggregated with all other subsidies which apply to that sector divided by the total energy use in that sector. For example, take a credit in a single US state supplied to poor households to reduce their energy bill. This dollar amount is added to all other subsidies and tax breaks in the Residential and Commercial sector in the US divided by the total energy use in the Residential and Commercial sector to obtain a sector-average rate.

How to use the module

Data can be used to calibrate end-use prices, tax rates and fossil fuel subsidies in IAMs.

Publications

  • Jewell, J. McCollum, D. et al. “Report on improving the representation of existing energy policies (taxes and subsidies) in IAMs.” (ADVANCE Deliverable No. 3.1). November 7, 2014.
  • McCollum, D. L., Jewell, J., Krey, V., Bazilian, M., Fay, M., & Riahi, K. (2016). Quantifying uncertainties influencing the long-term impacts of oil prices on energy markets and carbon emissions. Nature Energy, 16077. http://doi.org/10.1038/nenergy.2016.77.
  • Jewell, J. et al. “The impact of removing fossil fuel subsidies on emissions and clean energy” (in preparation).