IMF: End fossil fuel subsidies, tax carbon [The Hill]

Posted on March 28, 2013 by Kate

http://thehill.com/blogs/e2-wire/e2-wire/290657-imf-end-fossil-fuel-subsidies-tax-carbon

“The link between subsidies, consumption of energy and climate change has added a new dimension to the debate on energy subsides,” David Lipton, IMF first deputy managing director, said in prepared remarks at a Washington event hosted by the Peterson Institute for International Economics.

. .  .

The White House and congressional Democrats want to remove about $4 billion in annual tax provisions awarded to the oil-and-gas industry.

Oil-and-gas interests, and their Republican allies, say the provisions are cost-recovery mechanisms and business deductions that other industries also claim.

In 2011, nations doled out roughly $480 billion of “pre-tax” incentives, which are “when consumers pay less than supply cost of energy,” Lipton explained. They are generally found in emerging economies, according to an IMF report released Wednesday. 

And “post-tax” subsidies — the sum of pre-tax and tax incentives — hit $1.9 trillion. About 40 percent of those subsidies were awarded in advanced economies, with the U.S. leading the way at $502 billion.

This entry was posted in Political News - International, Political News - National. Bookmark the permalink.

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