## IMF Fossil Fuel Subsidies Data: 2023 Update

_IMF Working Papers, August 24, 2023_

## Source details

**Canonical URL:** [IMF Fossil Fuel Subsidies Data: 2023 Update](https://www.imf.org/en/publications/wp/issues/2023/08/22/imf-fossil-fuel-subsidies-data-2023-update-537281)

## Other formats

- [Markdown version](/en/publications/wp/issues/2023/08/22/imf-fossil-fuel-subsidies-data-2023-update-537281/index.md)
- [Structured JSON version](/en/publications/wp/issues/2023/08/22/imf-fossil-fuel-subsidies-data-2023-update-537281/index.json)
- [Bundle manifest](/en/publications/wp/issues/2023/08/22/imf-fossil-fuel-subsidies-data-2023-update-537281/bundle-manifest.json)

## Bibliographic details
- Authors: Simon Black, Antung A. Liu, Ian W.H. Parry
- Published: August 24, 2023
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9798400249006.001

---

### Overview
- Authors: Simon Black, Antung A. Liu, Ian W.H. Parry
- Publication date: August 24, 2023
- Scope: 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.
- Accompanying spreadsheets provide detailed results for 170 countries.

### Key findings and statistics
- Global fossil fuel subsidies in 2022: $7 trillion.
- Subsidies as share of global GDP in 2022: 7.1 percent of GDP.
- Explicit subsidies (undercharging for supply costs) share of total subsidy: 18 percent.
- Share of subsidy due to undercharging for global warming and local air pollution: nearly 60 percent.
- Coal pricing gap example: 80 percent of global coal consumption was priced at below half of its efficient level in 2022.
- Paper length: 32 pages.
- Working Paper series: Working Paper No. 2023/169.

### Projected impacts of full fossil fuel price reform
- Estimated reduction in global carbon dioxide emissions by 2030: 43 percent below baseline levels (in line with keeping global warming to 1.5-2oC).
- Revenue gains from reform: 3.6 percent of global GDP.
- Public health benefit: preventing 1.6 million local air pollution deaths per year.

### Analysis highlights
- Differences between efficient prices and retail fuel prices are described as large and pervasive.
- Explicit subsidies have more than doubled since 2020 but remain a minority share of the total subsidy burden.
- Environmental externalities (global warming and local air pollution) constitute the majority of the subsidy estimate.

### Policy implications and recommendations (implied by analysis)
- Comprehensive fossil fuel price reform would simultaneously:
  - Substantially cut global CO2 emissions (43 percent below baseline by 2030).
  - Raise significant government revenues (3.6 percent of global GDP).
  - Deliver major public health benefits (prevent 1.6 million local air pollution deaths per year).
- Reform efforts should account for both supply-cost undercharging and underpricing relative to environmental costs; addressing only explicit supply-cost subsidies would leave the larger environmental component unpriced.

*Source: IMF Fossil Fuel Subsidies Data: 2023 Update (IMF Working Paper No. 2023/169).*

---

## Content in this bundle

- **Working Paper**
  - [Working Paper (Markdown version)](/-/media/files/publications/wp/2023/english/wpiea2023169-print-pdf.pdf.md){rel="alternate" type="text/markdown"}
  - [Working Paper (PDF)](/-/media/files/publications/wp/2023/english/wpiea2023169-print-pdf.pdf){rel="external" type="application/pdf"}

---

_Source: https://www.imf.org/en/publications/wp/issues/2023/08/22/imf-fossil-fuel-subsidies-data-2023-update-537281_