Sector Network Africa

Global Subsidies Initiative (GSI) - "The Effects of Fossil-Fuel Subsidy Reform: A review of modelling and empirical studies" The Global Subsidies Initiative (GSI) releases the publication of Jennifer Ellis’ paper “The Effects of Fossil-Fuel Subsidy Reform: A review of modelling and empirical studies.” This is the second paper to be published in the series Untold Billions: Fossil-fuel subsidies, their impacts and the path to reform. Subsidies are powerful instruments and when granted to fossil fuels, which are at the heart of all modern economies, subsidies have impacts throughout the economy, society and environment. Understanding the complex trade-offs between the different impacts of subsidy reform is a challenge for any government considering phasing out fossil-fuel subsidies. In this report, Jennifer Ellis provides a detailed literature review, focusing on the six modeling studies in the last 20 years that have attempted to analyze global impacts of subsidies for all fuels.  The studies mostly considered effects on greenhouse gas emissions and gross domestic product, but very little of the work has considered other environmental impacts or social impacts.  The paper highlights a number of areas where further research should be undertaken but concludes that there is already enough evidence to demonstrate the significant environmental and economic benefits of phasing out fossil-fuel subsidies, and recommends that policy-makers do not delay in beginning the reform process.

Download at: http://www.globalsubsidies.org/en/research/economic-social-and-environmental-effects

EARTH TRACK: EIA Energy Subsidy Estimates: A Review of Assumptions and Omissions  

This Review provides a detailed look at gaps in federal tracking of energy subsidies in the United States. In addition to evaluating the research approach used by the US Energy Information Administration (EIA), the Review assesses how key assumptions and omissions in EIA's work resulted in a substantial undercounting of federal energy subsidies and an inaccurate portrayal of subsidy distribution across fuels.  EIA estimates are also placed in the context of other assessments of domestic energy subsidies conducted over the past thirty years.

Read more: http://earthtrack.net/files/uploaded_files/EIA%20subsidy%20review%20final_17Mar10.pdf

IMF Note - Petroleum Product Subsidies: Costly, Inequitable, and Rising Petroleum product subsidies have again started to rise with the rebound in international prices. This note reviews recent developments in subsidy levels and argues that it is necessary to reform the policy framework for setting petroleum product prices in order to reduce the fiscal burden of these subsidies and to address climate change. In 2003, global consumer subsidies for petroleum products totaled nearly $60 billion. Read more: http://www.imf.org/external/pubs/ft/spn/2010/spn1005.pdf