• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 42 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 5 days Does Toyota Know Something That We Don’t?
  • 4 days World could get rid of Putin and Russia but nobody is bold enough
  • 10 hours America should go after China but it should be done in a wise way.
  • 6 days China is using Chinese Names of Cities on their Border with Russia.
  • 7 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 8 days OPINION: Putin’s Genocidal Myth A scholarly treatise on the thousands of years of Ukrainian history. RCW
  • 7 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
  • 6 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 7 days Putin and Xi Bet on the Global South
  • 7 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"
  • 8 days United States LNG Exports Reach Third Place
  • 8 days Biden's $2 trillion Plan for Insfrastructure and Jobs

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

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News