How Large Are Global Energy Subsidies?
IMF Working Paper: How Large Are Global Energy Subsidies?
mei 2015, 42 pagina’s
19 mei 2015 – This paper provides a comprehensive, updated picture of energy subsidies at the global and regional levels. It focuses on the broad notion of post-tax energy subsidies, which arise when consumer prices are below supply costs plus a tax to reflect environmental damage and an additional tax applied to all consumption goods to raise government revenues. Post-tax energy subsidies are dramatically higher than previously estimated, and are projected to remain high. These subsidies primarily reflect under-pricing from a domestic (rather than global) perspective, so even unilateral price reform is in countries’ own interests. The potential fiscal, environmental and welfare impacts of energy subsidy reform are substantial.
Conclusion of the paper: US$5.3 trillion; 6½ percent of global GDP—that is our latest reckoning of the cost of energy subsidies in 2015. We define energy subsidies as the difference between what consumers pay for energy and its ‘true costs’ (including its supply costs and the damage that energy consumption inflicts on people and the environment) plus a country’s normal value added or sales tax rate. These estimates are shocking. The figure likely exceeds government health spending across the world, estimated by the World Health Organization at 6 percent of global GDP, but for the different year of 2013. They correspond to one of the largest negative externality ever estimated. They have global relevance. And that’s not all: earlier work by the IMF also shows that these subsidies have adverse effects on economic efficiency, growth, and inequality.
IMF, 18 mei 2015: Act Local, Solve Global: The $5.3 Trillion Energy Subsidy Problem
FluxEnergie, 19 mei 2015: IMF: ‘Wereldwijde subsidie fossiele energie 5,3 biljoen dollar’
NOS, 19 mei 2015: IMF hekelt biljoenensubsidie fossiele brandstoffen
de Volkskrant, 19 mei 2015: IMF berekent totale schade fossiele brandstoffen: 4,7 biljoen euro
Trouw, 19 mei 2015: ‘Schokkende’ cijfers: meer geld wereldwijd besteed aan subsidie fossiele energie dan aan zorg
The Guardian, 19 mei 2015: Fossil fuels subsidised by $10m a minute, says IMF
Groene Courant, 19 mei 2015: IMF: Elke minuut gaat er 10 miljoen subsidie naar fossiele brandstoffen