The International Monetary Fund (IMF) released a working paper covering energy subsidies at the global and regional levels. The report finds that global energy subsidies reached US$4,900bn in 2013, corresponding to around 6.5% of GDP worldwide, and should amount to US$5,300bn in 2015. Energy subsidies are pervasive in both advanced and developing economies and among oil-producing and non-oil-producing countries alike, although they are especially large (13–18%) relative to GDP in Emerging and Developing Asia, the Middle East, North Africa, and Pakistan (MENAP), and the CIS countries.
Among different energy products, coal accounts for the biggest subsidies with a share of 52% of the total amount in 2013, followed by petroleum products (33%), natural gas (10%) and electricity (2%).
Most energy subsidies arise from the failure to adequately charge for the cost of domestic environmental damage—only about one-quarter of the total is from climate change. The IMF estimates that eliminating post-tax subsidies in 2015 could raise government revenue by US$2,900bn (3.6% of global GDP), cut global CO2 emissions by more than 20%. After allowing for the higher energy costs faced by consumers, this action would raise global economic welfare by US$1,800bn (2.2% of global GDP).
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