Mitigation Potential of Removing Fossil Fuel Subsidies A General Equilibrium Assessment

Quoting a joint analysis made by the OECD and the IEA, G20 Leaders committed in September 2009 to ?rationalize and phase out over the medium term inefficient fossil fuel subsidies that encourage wasteful consumption?. This analysis was based on the OECD ENV-Linkages General Equilibrium model and sho...

Full description

Bibliographic Details
Main Author: Burniaux, Jean-Marc
Other Authors: Château, Jean
Format: eBook
Language:English
Published: Paris OECD Publishing 2011
Series:OECD Economics Department Working Papers
Subjects:
Online Access:
Collection: OECD Books and Papers - Collection details see MPG.ReNa
LEADER 02731nma a2200265 u 4500
001 EB001831123
003 EBX01000000000000000997569
005 00000000000000.0
007 cr|||||||||||||||||||||
008 180616 ||| eng
100 1 |a Burniaux, Jean-Marc 
245 0 0 |a Mitigation Potential of Removing Fossil Fuel Subsidies  |h Elektronische Ressource  |b A General Equilibrium Assessment  |c Jean-Marc, Burniaux and Jean, Château 
246 2 1 |a Impact potentiel de l'élimination des subsides à la consommation des énergies fossiles sur les émissions de gaz à effet de serre : une évaluation en équilibre général / Jean-Marc, Burniaux et Jean, Château 
246 3 1 |a Impact potentiel de l'élimination des subsides à la consommation des énergies fossiles sur les émissions de gaz à effet de serre 
260 |a Paris  |b OECD Publishing  |c 2011 
300 |a 28 p.  |c 21 x 29.7cm 
653 |a Economics 
700 1 |a Château, Jean 
041 0 7 |a eng  |2 ISO 639-2 
989 |b OECD  |a OECD Books and Papers 
490 0 |a OECD Economics Department Working Papers 
028 5 0 |a 10.1787/5kgdx1jr2plp-en 
856 4 0 |a oecd-ilibrary.org  |u https://doi.org/10.1787/5kgdx1jr2plp-en  |x Verlag  |3 Volltext 
082 0 |a 330 
520 |a Quoting a joint analysis made by the OECD and the IEA, G20 Leaders committed in September 2009 to ?rationalize and phase out over the medium term inefficient fossil fuel subsidies that encourage wasteful consumption?. This analysis was based on the OECD ENV-Linkages General Equilibrium model and shows that removing fossil fuel subsidies in a number of non-OECD countries could reduce world Greenhouse Gas (GHG) emissions by 10% in 2050 (OECD, 2009). Indeed, these subsidies are huge. IEA estimates indicate that total subsidies to fossil fuel consumption in 37 non-OECD countries in 2008 amounted to USD 557 billions (IEA, OPEC, OECD, World Bank, 2010). This represents almost five times the yearly bilateral aid flows to developing countries as defined by the Official Development Assistance (ODA). This paper discusses the assumptions, data and both environmental and economic implications of removing these subsidies. It shows that, though removing these subsidies would amount to roughly a seventh of the effort needed to stabilize GHG concentration at a level of 450ppm or below 2°C, the full environmental benefit of this policy option can only be achieved if, in parallel, emissions are also capped in OECD countries. Finally, though removing these subsidies qualifies as being a ?win-win? option at the global level in terms of environmental and economic benefits, this is not true for all countries/regions. The paper also provides some discussion about the robustness of these results