IMF Fossil Fuel Subsidies Data: 2023 Update
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Summary:
This paper provides a comprehensive global, regional, and country-level update of: (i) efficient fossil fuel prices to reflect supply and environmental costs; and (ii) subsidies implied by charging below efficient fuel prices. Globally, fossil fuel subsidies were $7 trillion in 2022 or 7.1 percent of GDP. Explicit subsidies (undercharging for supply costs) have more than doubled since 2020 but are still only 18 percent of the total subsidy, while nearly 60 percent is due to undercharging for global warming and local air pollution. Differences between efficient prices and retail fuel prices are large and pervasive, for example, 80 percent of global coal consumption was priced at below half of its efficient level in 2022. Full fossil fuel price reform would reduce global carbon dioxide emissions to an estimated 43 percent below baseline levels in 2030 (in line with keeping global warming to 1.5-2oC), while raising revenues worth 3.6 percent of global GDP and preventing 1.6 million local air pollution deaths per year. Accompanying spreadsheets provide detailed results for 170 countries.
Series:
Working Paper No. 2023/169
Subject:
Energy subsidies Environment Expenditure Fuel prices Greenhouse gas emissions Non-renewable resources Prices
Frequency:
regular
English
Publication Date:
August 24, 2023
ISBN/ISSN:
9798400249006/1018-5941
Stock No:
WPIEA2023169
Format:
Paper
Pages:
32
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