Knowledge news
A new report from the International Monetary Fund (IMF) explores the issue of energy subsidies, including their consequences, fiscal and economic costs, as well as key elements for subsidy reform. The report finds that subsidies for energy consumption reached $480 billion in 2011, while the mispricing of energy (governments failing to factor in negative externalities from energy consumption) amounted to a further $1.4 trillion. The report urges policymakers to reform energy subsidies and suggests a number of key elements for subsidy reform.