How Large Are Global Fossil Fuel Subsidies?. (March 2017)
- Record Type:
- Journal Article
- Title:
- How Large Are Global Fossil Fuel Subsidies?. (March 2017)
- Main Title:
- How Large Are Global Fossil Fuel Subsidies?
- Authors:
- Coady, David
Parry, Ian
Sears, Louis
Shang, Baoping - Abstract:
- Highlights: Fossil fuel subsidies are large, amounting to 6.5% of global GDP in 2015. Mispricing from a domestic perspective accounts for the bulk of the subsidy. Coal subsidies account for the largest part (about half) of global subsidies. In absolute terms, subsidies are highly concentrated in a few large countries. The environmental, fiscal, and welfare gains from subsidy reform are substantial. Summary: This paper estimates fossil fuel subsidies and the economic and environmental benefits from reforming them, focusing mostly on a broad notion of subsidies arising when consumer prices are below supply costs plus environmental costs and general consumption taxes. Estimated subsidies are $4.9 trillion worldwide in 2013 and $5.3 trillion in 2015 (6.5% of global GDP in both years). Undercharging for global warming accounts for 22% of the subsidy in 2013, air pollution 46%, broader vehicle externalities 13%, supply costs 11%, and general consumer taxes 8%. China was the biggest subsidizer in 2013 ($1.8 trillion), followed by the United States ($0.6 trillion), and Russia, the European Union, and India (each with about $0.3 trillion). Eliminating subsidies would have reduced global carbon emissions in 2013 by 21% and fossil fuel air pollution deaths 55%, while raising revenue of 4%, and social welfare by 2.2%, of global GDP.
- Is Part Of:
- World development. Volume 91(2017)
- Journal:
- World development
- Issue:
- Volume 91(2017)
- Issue Display:
- Volume 91, Issue 2017 (2017)
- Year:
- 2017
- Volume:
- 91
- Issue:
- 2017
- Issue Sort Value:
- 2017-0091-2017-0000
- Page Start:
- 11
- Page End:
- 27
- Publication Date:
- 2017-03
- Subjects:
- energy subsidies -- global warming -- air pollution -- efficient taxation -- deadweight loss -- revenue
Economic history -- 1990- -- Periodicals
Economic assistance -- Developing countries -- Periodicals
330.9 - Journal URLs:
- http://www.sciencedirect.com/science/journal/0305750X ↗
http://www.elsevier.com/journals ↗ - DOI:
- 10.1016/j.worlddev.2016.10.004 ↗
- Languages:
- English
- ISSNs:
- 0305-750X
- Deposit Type:
- Legaldeposit
- View Content:
- Available online (eLD content is only available in our Reading Rooms) ↗
- Physical Locations:
- British Library DSC - 9354.150000
British Library DSC - BLDSS-3PM
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- 14517.xml