Summary of Energy Subsidy Reform

Looking for the report?
We have the summary! Get the key insights in just 5 minutes.

Energy Subsidy Reform summary
Start getting smarter:
or see our plans

Rating

8 Overall

8 Applicability

7 Innovation

7 Style


Recommendation

Although 176 nations sweeten the pot for oil and electricity producers and consumers, the International Monetary Fund (IMF) finds that such energy subsidies amount to a $1.9 trillion boondoggle hidden in plain sight. The IMF argues – based on a study of 22 nations – that these subsidies are a bad idea for a number of reasons. National handouts encourage consumption, discourage innovation and exacerbate household income inequality. The IMF urges national governments worldwide to pursue a six-step approach to ending subsidies, including creating a clear plan, and communicating the costs of subsidies and the benefits of ending them. While this report highlights the eye-popping costs of energy subsidies, its dry writing style may make some readers work a bit too hard. Yet, as reports go, it’s nicely laid out, with bold-faced highlights and an inviting design that highlights key data. getAbstract recommends this report to investors, policy makers, NGOs, energy executives and all those seeking insight about energy markets.

In this summary, you will learn

  • What visible and invisible costs energy subsidies create,
  • Why they are a bad idea, and
  • What six steps nations can take to accomplish subsidy reform.
 

About the Author

International Monetary Fund (IMF) staff led by Benedict Clements prepared this report, which has contributions from two dozen IMF employees.

 

Summary

A Trillion-Dollar Boondoggle
Politically popular, economically dubious and environmentally questionable, energy subsidies make up a huge part of the global economy. Post-tax subsidies granted by 176 nations amounted to $1.9 trillion in 2011, with the world’s largest subsidies coming from...

More on this topic

Customers who read this summary also read

Efficient Management of State-Owned Enterprises
Efficient Management of State-Owned Enterprises
7
Adapting to Climate Change
Adapting to Climate Change
World Economic Outlook April 2016
World Economic Outlook April 2016
7
The Tax Cuts and Jobs Act
The Tax Cuts and Jobs Act
8
World Economic Outlook April 2017
World Economic Outlook April 2017
7
Worldwide Cost of Living 2018
Worldwide Cost of Living 2018
8

Related Channels

Comment on this summary