Comparison of Fossil-Fuel Subsidy and Support Estimates

The document outlines how different international organizations estimate fossil-fuel subsidies, highlighting the distinction between the 'Inventory Approach' used by the OECD and GSI and the 'Price-Gap Approach' used by the IEA and IMF. It notes that estimates vary based on the types of support included, the countries and fuels covered, and the time periods analyzed. While most focus on direct fiscal incentives, the IMF's 'post-tax' measure uniquely includes implicit support from the failure to charge for environmental damages and externalities.

• The OECD and GSI utilize an 'Inventory Approach' to measure subsidies. The OECD's method focuses on constructing an inventory of government support policies, primarily including "budgetary transfers and tax expenditures", and is based on data from 34 OECD member countries.
• The IEA and IMF employ a 'Price-Gap Approach', which calculates the difference between domestic fuel prices and international reference prices. This method identifies consumption subsidies when domestic prices are lower than the benchmark, though it may overlook producer subsidies from inefficient producers or direct payments like fuel vouchers.
• The IMF provides two distinct types of estimates: 'pre-tax' and 'post-tax'. The post-tax measure is significantly higher—estimated at US$ 2,000 billion in 2011 compared to US$ 492 billion pre-tax—because it accounts for the failure to charge for environmental damages, such as global warming and health impacts from air pollution.
• The scope of energy carriers and countries varies across organizations. The OECD covers 34 countries and includes petroleum, coal, and natural gas; the IEA covers 40 countries; the IMF covers 176 countries; and the GSI's coverage is study-dependent.

APA

International Institute for Sustainable Development (2012). Comparison of Fossil-Fuel Subsidy and Support Estimates. https://www.iisd.org/gsi/sites/default/files/ffs_methods_estimationcomparison.pdf

Chicago

International Institute for Sustainable Development. Comparison of Fossil-Fuel Subsidy and Support Estimates. 2012. https://www.iisd.org/gsi/sites/default/files/ffs_methods_estimationcomparison.pdf.

Wikipedia

{{cite report |author=International Institute for Sustainable Development |title=Comparison of Fossil-Fuel Subsidy and Support Estimates |date=2012 |url=https://www.iisd.org/gsi/sites/default/files/ffs_methods_estimationcomparison.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{internationalinstituteforsustainabledevelopment2012comparison, author = {{International Institute for Sustainable Development}}, title = {{Comparison of Fossil-Fuel Subsidy and Support Estimates}}, institution = {International Institute for Sustainable Development}, year = {2012}, url = {https://www.iisd.org/gsi/sites/default/files/ffs_methods_estimationcomparison.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }