Fossil Fuels And Pollution

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Still Not Getting Energy Prices Right: A Global and Country Update of Fossil Fuel Subsidies

Still Not Getting Energy Prices Right: A Global and Country Update of Fossil Fuel Subsidies
Author :
Publisher : International Monetary Fund
Total Pages : 42
Release :
ISBN-10 : 9781513595405
ISBN-13 : 1513595407
Rating : 4/5 (407 Downloads)

Book Synopsis Still Not Getting Energy Prices Right: A Global and Country Update of Fossil Fuel Subsidies by : Ian Parry

Download or read book Still Not Getting Energy Prices Right: A Global and Country Update of Fossil Fuel Subsidies written by Ian Parry and published by International Monetary Fund. This book was released on 2021-09-24 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper provides a comprehensive global, regional, and country-level update of: (i) efficient fossil fuel prices to reflect their full private and social costs; and (ii) subsidies implied by mispricing fuels. The methodology improves over previous IMF analyses through more sophisticated estimation of costs and impacts of reform. Globally, fossil fuel subsidies were $5.9 trillion in 2020 or about 6.8 percent of GDP, and are expected to rise to 7.4 percent of GDP in 2025. Just 8 percent of the 2020 subsidy reflects undercharging for supply costs (explicit subsidies) and 92 percent for undercharging for environmental costs and foregone consumption taxes (implicit subsidies). Efficient fuel pricing in 2025 would reduce global carbon dioxide emissions 36 percent below baseline levels, which is in line with keeping global warming to 1.5 degrees, while raising revenues worth 3.8 percent of global GDP and preventing 0.9 million local air pollution deaths. Accompanying spreadsheets provide detailed results for 191 countries.


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