{
  "title": "Global Fossil Fuel Subsidies Remain Large: An Update Based on Country-Level Estimates",
  "publication": "IMF Working Papers, May 2, 2019",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2019/05/02/global-fossil-fuel-subsidies-remain-large-an-update-based-on-country-level-estimates-46509",
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  "summary": "This paper updates estimates of fossil fuel subsidies, defined as fuel consumption times the gap between existing and efficient prices (i.e., prices warranted by supply costs, environmental costs, and revenue considerations), for 191 countries. Globally, subsidies remained large at $4.7 trillion (6.",
  "sections": [
    {
      "heading": "Methodology and scope",
      "content": "- Subsidies are defined as fuel consumption times the gap between existing and efficient prices (i.e., prices warranted by supply costs, environmental costs, and revenue considerations).\n- Estimates cover 191 countries.\n- Paper length: 39 pages; Series: Working Paper No. 2019/089; DOI: https://doi.org/10.5089/9781484393178.001."
    },
    {
      "heading": "Key findings: magnitude and distribution",
      "content": "- Global subsidies in 2015: $4.7 trillion (6.3 percent of global GDP).\n- Projected global subsidies in 2017: $5.2 trillion (6.5 percent of GDP).\n- Largest subsidizers in 2015:\n  - China: $1.4 trillion\n  - United States: $649 billion\n  - Russia: $551 billion\n  - European Union: $289 billion\n  - India: $209 billion\n- About three quarters of global subsidies are due to domestic factors.\n- Fuel composition: coal and petroleum together account for 85 percent of global subsidies."
    },
    {
      "heading": "Environmental and fiscal impacts of efficient pricing",
      "content": "- Efficient fossil fuel pricing in 2015 would have:\n  - Lowered global carbon emissions by 28 percent.\n  - Lowered fossil fuel air pollution deaths by 46 percent.\n  - Increased government revenue by 3.8 percent of GDP."
    },
    {
      "heading": "Policy implications and analysis",
      "content": "- Energy pricing reform is largely in countries’ own national interest because about three quarters of subsidies stem from domestic factors.\n- Targeting coal and petroleum would address the bulk of the subsidy problem, given their 85 percent share of global subsidies.\n- Achieving efficient fossil fuel pricing delivers simultaneous environmental (large reductions in emissions and air pollution deaths) and fiscal (notable revenue gains) benefits.\n\nDavid Coady, Ian W.H. Parry, Nghia-Piotr Le, and Baoping Shang. \"Global Fossil Fuel Subsidies Remain Large: An Update Based on Country-Level Estimates\", May 2, 2019.\n\n---\n\n Content in this bundle\n\n- Working Paper\n  - Working Paper (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Working Paper (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2019/05/02/global-fossil-fuel-subsidies-remain-large-an-update-based-on-country-level-estimates-46509"
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    "Authors: David Coady, Ian W.H. Parry, Nghia-Piotr Le, Baoping Shang",
    "Published: May 2, 2019",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781484393178.001",
    "Subsidies are defined as fuel consumption times the gap between existing and efficient prices (i.e., prices warranted by supply costs, environmental costs, and revenue considerations).",
    "Estimates cover 191 countries.",
    "Paper length: 39 pages; Series: Working Paper No. 2019/089; DOI: https://doi.org/10.5089/9781484393178.001.",
    "Global subsidies in 2015: $4.7 trillion (6.3 percent of global GDP).",
    "Projected global subsidies in 2017: $5.2 trillion (6.5 percent of GDP).",
    "Largest subsidizers in 2015:",
    "About three quarters of global subsidies are due to domestic factors.",
    "Fuel composition: coal and petroleum together account for 85 percent of global subsidies.",
    "Efficient fossil fuel pricing in 2015 would have:",
    "Energy pricing reform is largely in countries’ own national interest because about three quarters of subsidies stem from domestic factors.",
    "Targeting coal and petroleum would address the bulk of the subsidy problem, given their 85 percent share of global subsidies.",
    "Achieving efficient fossil fuel pricing delivers simultaneous environmental (large reductions in emissions and air pollution deaths) and fiscal (notable revenue gains) benefits.",
    "**Working Paper**"
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