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Global Subsidies for Fossil Fuels: $5 Trillion a Year
"Fossil fuels have two major problems that paint a dim picture for their future energy dominance," according to an article by John Abraham. The first: they cause climate change. "Second, fossil fuels are expensive. Much of their costs are hidden, however, as subsidies. If people knew how large their subsidies were, there would be a backlash against them from so-called financial conservatives."
So, the World Development journal has published a new study from authors at the International Monetary Fund (IMF) that "quantifies the amount of subsidies directed toward fossil fuels globally." The results are "shocking," writes Abraham.
"The subsidies were $4.9 tn in 2013 and they rose to $5.3 tn just two years later," according to the findings of the study. The article devotes a lot more energy to describing the politics and consequences of the subsidies.