Category Archives: Uncategorized

How Big Are Fossil Fuel Subsidies? Let’s Make it Clear

Every year, the world spends billions of dollars subsidizing the production, exploration and use of oil, coal and natural gas. By all accounts, these subsidies don’t make sense for the economy or for the environment. They impose significant burdens on government budgets, in many cases more than is spent on health or education, encourage wasteful use of scarce resources and tend to benefit the rich more than the poor. For example, IMF analysis has shown that on average only 3 percent of gasoline and 7 percent of diesel fuel subsidies reach the poorest 20 percent of households. And arecent GSI study found that removing fossil fuel subsidies in 20 countries between now and 2020 could reduce greenhouse gas emissions by as much as 11 percent.

Continue reading