Implicit tax rate on energy

Short description

This indicator is defined as the ratio between energy tax revenues and final energy consumption calculated for a calendar year (Eurostat).

Meta data

Unit:

Euro per tonne of oil equivalent

Original data

Data:

Implicit_tax_energy.csv

Unit for original data:

Euro per tonne of oil equivalent

Date of extraction:

Wednesday, April 18, 2018

Data source link:

Eurostat

Rationale

The implicit tax rate on energy is defined “as the ratio between energy tax revenues and final energy consumption calculated for a calendar year. Energy tax revenues are measured in euro (deflated) and the final energy consumption as toe (tonnes of oil equivalent)”.1 The indicator captures taxation as a regulatory driver for higher energy efficiency.

1. Eurostat 2015. ‘Implicit Tax Rate on Energy (tsdcc360)’. Accessed October 12. http://ec.europa.eu/eurostat/cache/metadata/en/tsdcc360_esmsip.htm

Limitations

The “[i]mplicit tax rate on energy treats equally all kinds of energy consumption, regardless of their environmental impact; this means an energy unit of oil equivalent produced with hydroelectric power has the same weight as the same unit produced by burning brown coal”.1 This means that the indicator works well for capturing tax drivers for energy efficiency, yet less so for renewable energy.

1. Eurostat 2015. ‘Implicit Tax Rate on Energy (tsdcc360)’. Accessed October 12. http://ec.europa.eu/eurostat/cache/metadata/en/tsdcc360_esmsip.htm

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The indicator is relevant to the following innovation systems on this website

Energy efficiency

Energy needs to be used much more efficiently.