Still Not Getting Energy Prices Right: A Global and Country Update of Fossil Fuel Subsidies

This paper provides a comprehensive global, regional, and country-level update of: (i) efficient fossil fuel prices to reflect supply and environmental costs; and (ii) subsidies implied by charging below efficient fuel prices. The methodology improves over previous IMF analyses through more sophisticated estimation of costs and impacts of reform. . Efficient fuel pricing in 2025 would reduce global carbon dioxide global carbon dioxide emissions 36 percent below baseline levels, which is in line with keeping global warming to 1.5 degrees, while raising revenues worth 3.8 percent of global GDP and preventing 0.9 million local air pollution deaths per year.