Description

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.

More publications in this series: Working Papers

More publications by: David Coady ; Ian W.H. Parry ; Louis Sears ; Baoping Shang