• 4 minutes Ten Years of Plunging Solar Prices
  • 7 minutes Hydrogen Capable Natural Gas Turbines
  • 10 minutes World looks on in horror as Trump flails over pandemic despite claims US leads way
  • 13 minutes Large gas belt discovered in China
  • 56 mins COVID 19 May Be Less Deadly Than Flu Study Finds
  • 1 hour Would bashing China solve all the problems of the United States
  • 4 hours Chicago Threatens To Condemn - Possibly Demolish - Churches Defying Lockdown
  • 2 hours Model 3 cheaper to buy than BMW 3 series.
  • 7 hours Yale University Epidemiologist Publishes Paper on Major Benefits of Hydroxchloroquine for High-risk Outpatients. Quacksalvers like Fauci should put lives ahead of Politics
  • 16 mins Incompetent "Journalists"
  • 2 hours Let’s Try This....
  • 12 hours China to Impose Dictatorship on Hong Kong
  • 7 hours HVDC Cheaper Than Low-carbon Natural Gas
  • 56 mins Iran's first oil tanker has arrived near Venezuela
  • 12 hours Nothing can shake AMLO’s fossil-fuel fixation
  • 11 hours 60 mph electric mopeds
  • 7 hours Oil and Gas After COVID-19
  • 2 hours Pompeo's Hong Kong
U.S. LNG Investment Suffers As Demand Dwindles

U.S. LNG Investment Suffers As Demand Dwindles

Weak demand is sparking a…

Russia To Expand Influence In Iraq’s Oil Heartland

Russia To Expand Influence In Iraq’s Oil Heartland

Russia has once again signalled…

Fossil Fuel Industry Receives $1.3 Trillion in Subsidies Each Year

The International Monetary Fund has released a recent study titled ‘Energy Subsidy Reform: Lessons and Implications’ which calculates that in 2011 the world offered the fossil fuel industry subsidies amounting to $1.3 trillion, or 8% of the total global government revenues.

The largest subsidiser in the world by far was the United States, gifting $502 billion to the fossil fuel industry, China was second at $279 billion, and Russia was third, offering $116 billion.

According to CleanTechnica, the IMF has estimated that in order for the US to correct the situation, it will need to setup a new system of fees, levies, and taxes that will cost more than $500 billion a year.

Related article: Oilprice.com Intelligence Report: The IMF vs. Energy Subsidies

The largest contributor to the subsidies is the failure to properly price carbon pollution, costing a little over $1 trillion.  This failure to effectively include the pollution costs into the consumer price of the fossil fuels, via the use of a carbon tax, or a cap-and-trade system, has led to the world’s economic giants becoming the largest subsidy payers.

Pre-tax subsidies, included in the tax code, and mostly offered by oil producing countries in the Middle East and North Africa, add an extra $480 billion to total. And then VAT exemptions offered by many other countries contribute another several hundred billion dollars.

By. Joao Peixe of Oilprice.com



Join the discussion | Back to homepage



Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News