Fossil fuel subsidies — $US10 million per minute

Opponents often object to subsidies for sustainable energy. Frequently, this is in the form of a plea for a, “level playing field”.

The absurdity of such pleas is highlighted in the recent working paper on this topic from the International Monetary Fund:

“Post-tax energy subsidies … $4.9 trillion ... in 2013, and projected to reach $5.3 trillion … in 2015.”¹ Note that this is not an IMF report as such — as a working paper, it represents the views of its authors.²

$US5.3 trillion per annum is $US10 million per minute. It’s also more than the total health spending of all the world’s governments.³

Many, on all sides of the climate change & economic debates, have expressed concern that a modern industrial society may not be possible without cheap fossil fuels. This report suggests that those fears are unfounded — fossil fuels aren’t cheap.

http://www.theguardian.com/environment/2015/may/18/fossil-fuel-companies-getting-10m-a-minute-in-subsidies-says-imf

http://reneweconomy.com.au/2015/fossil-fuels-subsidies-cost-world-5-3-trillion-a-year-10m-a-minute-27983
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¹ “IMF Working Paper”, 2015, p6: “Post-tax energy subsidies are dramatically higher than previously estimated—$4.9 trillion (6.5 percent of global GDP) in 2013, and projected to reach $5.3 trillion (6.5 percent of global GDP) in 2015.” https://www.imf.org/external/pubs/ft/wp/2015/wp15105.pdf

² “IMF working Paper”, 2015, p2 https://www.imf.org/external/pubs/ft/wp/2015/wp15105.pdf

³ http://www.theguardian.com/environment/2015/may/18/fossil-fuel-companies-getting-10m-a-minute-in-subsidies-says-imf / large global energy subsidies larger than we thought new estimates International Monetary Fund cost subsidising fossil fuels enormous $US5.3 trillion a year $US10 million minute calculations extremely robust IMF polluters costs social welfare health environmental broader economic governments burning coal oil gas post-tax energy subsidies dramatically higher previously estimated global GDP report eminent UK economist Nicholas Stern figure significant underestimate complete estimate costs climate change implicit subsidies fossil fuels much bigger coal biggest recipient subsidisation high environmental damage road fuels meaningful excises consumption petroleum most heavily subsidised product report projected subsidy despite declining petroleum prices natural gas electricity global GDP environmental impacts energy inputs power generation report post-tax subsidies advanced developing economies GDP emerging developing countries no justification enormous subsidies fossil fuels distort markets damages economies poorer countries Lord Stern Australia report nation’s fossil fuel sector $47 billion in federal government subsidies wind turbines The Australia Institute Rod Campbell fossil fuel industry schools hospitals public infrastructure state governments mineral fossil fuel industries fully fund the Gonski education reforms diesel fuel rebate fuel tax credit 2015 Federal Budget Paper Galilee coal projects Abbot Point terminal cost Queensland taxpayers old false story cheap fossil fuels health climate costs never accounted directly costing taxpayers billions Campbell eliminating subsidies for fossil fuels cut global carbon emissions by 20 per cent premature deaths outdoor air pollution deliver projected economic gains economic game-changer report says policy policymakers stakeholders need for reform benefits reform fiscal balances environment human health economy report subsidies for renewable energy pricing of fossil fuels subsidies for renewable energy /