Publication:
Distributional and Health Co-Benefits of Fossil Fuel Subsidy Reforms: Evidence from 35 Countries

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dc.contributor.authorKlaiber, Christoph
dc.contributor.authorRentschler, Jun
dc.contributor.authorDorband, Ira
dc.contributor.authorDorband, Ira Irina
dc.date.accessioned2023-04-13T17:49:19Z
dc.date.available2023-04-13T17:49:19Z
dc.date.issued2023-04-13
dc.description.abstractGovernments around the world continue to subsidize fossil fuel use, incentivizing unsustainable consumption levels with consequences for the global climate and human health. However, governments have proven reluctant to reform fossil fuel subsidies (FFS). This is mainly due to concerns over potential adverse effects on poverty and equity; the positive effects on air quality and health are often overlooked. This study offers new insights on the distributional consumption incidence of FFS reforms and expected benefits through improved air quality and health outcomes. Using the World Bank-International Monetary Fund Climate Policy Assessment Tool, we conduct country-level analyses of a complete removal of domestic FFS, considering 19 countries for the distributional consumption analysis, and 25 countries for the health benefits analysis. Our findings suggest that across countries, the absolute consumption burden of FFS reform on the richest decile would be 13 times larger than on the lowest-income decile, supporting evidence that FFS are an extremely inefficient way of supporting lower-income groups. In relative terms, however, the disparity is much smaller, with the richest decile bearing a relative consumption burden that is just 1.1 times larger than that borne by the lowest-income decile. In terms of positive health effects, removing FFS in 25 countries could save a total of 360,000 lives by 2035. The magnitude of the health effect depends on country-specific factors, such as the size of initial subsidy programs, and the extent to which these cover the most polluting fuels. FFS reforms can be a first step in improving air quality and reducing the burden of disease associated with air pollution.en
dc.identifierhttp://documents.worldbank.org/curated/en/099843204072311699/IDU088dc23960f2dd046cc090660a4a9756d5e97
dc.identifier.doi10.1596/1813-9450-10398
dc.identifier.urihttps://openknowledge.worldbank.org/handle/10986/39685
dc.languageEnglish
dc.language.isoen
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Papers; 10398
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttps://creativecommons.org/licenses/by/3.0/igo/
dc.subjectDETOX DEVELOPMENT
dc.subjectENERGY SUBSIDIES
dc.subjectFUEL SUBSIDIES
dc.subjectAIR POLLUTION
dc.subjectUNSUSTAINABLE CONSUMPTION
dc.subjectCLIMATE CHANGE
dc.subjectFOSSIL FUEL SUBSIDIES
dc.titleDistributional and Health Co-Benefits of Fossil Fuel Subsidy Reformsen
dc.title.alternativeDetox Development: Repurposing Environmentally Harmful Subsidies -- Background Paperen
dc.title.subtitleEvidence from 35 Countriesen
dc.typeWorking Paper
dspace.entity.typePublication
okr.crossref.titleDistributional and Health Co-Benefits of Fossil Fuel Subsidy Reforms: Evidence from 35 Countries
okr.date.disclosure2023-04-07
okr.date.lastmodified2023-04-07T00:00:00Zen
okr.doctypePolicy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/099843204072311699/IDU088dc23960f2dd046cc090660a4a9756d5e97
okr.guid099843204072311699
okr.identifier.docmidIDU-88dc2396-f2dd-46cc-9066-a4a9756d5e97
okr.identifier.doi10.1596/1813-9450-10398
okr.identifier.externaldocumentum34037538
okr.identifier.internaldocumentum34037538
okr.identifier.reportWPS10398
okr.import.id381
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/099843204072311699/pdf/IDU088dc23960f2dd046cc090660a4a9756d5e97.pdfen
okr.topicEnvironment::Air Quality & Clean Air
okr.topicEnvironment::Climate Change Mitigation and Green House Gases
okr.topicMacroeconomics and Economic Growth::Taxation & Subsidies
okr.unitGGSVP Chief Economist (GGSCE)
relation.isAuthorOfPublication7322ddaf-2237-41b3-935a-2ad0509eab50
relation.isAuthorOfPublication.latestForDiscovery7322ddaf-2237-41b3-935a-2ad0509eab50
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