Post by account_disabled on Mar 13, 2024 22:27:47 GMT -7
Eliminating fossil fuel subsidies worth trillion worldwide would reduce CO emissions by . billion tons — a percent reduction — and produce “major gains” for economic growth, according to an International Monetary Fund report.
Energy Subsidy Reform – Lessons and Implications says subsidies for petroleum products, electricity, natural gas and coal equal about . percent of global GDP, or percent of government revenues. Advanced economies pay out about percent of the global total, the report says, listing the top three subsidizers as the US at $ billion, China at $ billion and Russia at $ billion.
IMF research shows that countries maintain CG Leads pre-tax energy subsidies that exceed percent of GDP. The study finds that eliminating pre-tax subsidies alone would reduce global CO emissions by about to percent, which according to IMF first deputy managing director David Lipton, would represent “a significant first step” in cutting emissions and achieving about to percent of the Copenhagen Accord’s reduction pledges.
The report found, for some countries, fossil fuel subsidies are becoming so large that they are leading to unmanageable budget deficits and threatening economic stability. In emerging and developing counties, these energy subsidies mean governments don’t invest in needed infrastructure.
Subsidies also reinforce inequality because they mostly benefit upper-income groups, which are the biggest consumers of energy. According to Lipton, the richest percent in low- and middle-income countries capture percent of the subsidies.
Removing fossil fuel subsidies can also strengthen incentives for research and development in energy-saving technologies, Lipton says.
A National Research Council study published last week found the US could reduce petroleum use and cars’ greenhouse gas emissions percent by compared to levels by using more efficient vehicles, alternative fuels and implementing strong government policies such as higher subsidies for alternative fuels.
Last month, the Spanish Parliament approved a law that cuts subsidies for alternative energy technologies, backtracking on its push for green power. Foreign investors in renewable energy projects in Spain have hired lawyers to prepare potential legal action.
Energy Subsidy Reform – Lessons and Implications says subsidies for petroleum products, electricity, natural gas and coal equal about . percent of global GDP, or percent of government revenues. Advanced economies pay out about percent of the global total, the report says, listing the top three subsidizers as the US at $ billion, China at $ billion and Russia at $ billion.
IMF research shows that countries maintain CG Leads pre-tax energy subsidies that exceed percent of GDP. The study finds that eliminating pre-tax subsidies alone would reduce global CO emissions by about to percent, which according to IMF first deputy managing director David Lipton, would represent “a significant first step” in cutting emissions and achieving about to percent of the Copenhagen Accord’s reduction pledges.
The report found, for some countries, fossil fuel subsidies are becoming so large that they are leading to unmanageable budget deficits and threatening economic stability. In emerging and developing counties, these energy subsidies mean governments don’t invest in needed infrastructure.
Subsidies also reinforce inequality because they mostly benefit upper-income groups, which are the biggest consumers of energy. According to Lipton, the richest percent in low- and middle-income countries capture percent of the subsidies.
Removing fossil fuel subsidies can also strengthen incentives for research and development in energy-saving technologies, Lipton says.
A National Research Council study published last week found the US could reduce petroleum use and cars’ greenhouse gas emissions percent by compared to levels by using more efficient vehicles, alternative fuels and implementing strong government policies such as higher subsidies for alternative fuels.
Last month, the Spanish Parliament approved a law that cuts subsidies for alternative energy technologies, backtracking on its push for green power. Foreign investors in renewable energy projects in Spain have hired lawyers to prepare potential legal action.