Measuring fossil fuel subsidies

The fall in energy prices has opened a window of opportunity for governments in both developed and developing countries to reform subsidy schemes for fossil fuels, which worldwide cost an estimated USD 1.9 trillion a year. Careful reforms would not only strengthen public finances but reduce economic distortions and help lower C02 emissions. This Economic Brief aims to shed some light on the true magnitude and allocation of fossil fuel subsidies so as to enable comparisons between countries and regions.