ABSTRACT
Climate change concerns and the need to transition to more sustainable energy systems have triggered renewed attention to the ever increasing fossil-fuel subsidies.
Worldwide subsidies to conventional fuels (measured on a pre-tax basis) reached US$548 billion in 2013 (IEA, 2014) and could exceed US$600 billion by 2020 without policy reforms (IEA, 2011).1 Many of these subsidies are located in emerging and developing countries.2 For some products, such as coal, post-tax subsidies are substantial because prices do not reflect negative externalities (on environment and health). Energy products are taxed much less than other products.
