Table 2.
Underpricing of fossil fuels, group of 20 economies
| Annual exploration subsidies ($ billion) 2010–2013a | Share of GDP (%)b | Annual consumption subsidies ($ billion) 2018c | Share of GDP (%)c | Annual public subsidies ($ billion) 2015–2016d | Share of GDP (%)b | Annual post-tax subsidies ($ billion) 2015e | Share of GDP (%)e | |
|---|---|---|---|---|---|---|---|---|
| Argentina | 6.5 | 1.5 | 6.4 | 1.2 | 19 | 2.9 | ||
| Australia | 3.6 | 0.3 | 29 | 2.3 | ||||
| Brazil | 12.0 | 0.5 | ||||||
| Canada | 3.5 | 0.2 | 4.7 | 0.3 | 43 | 2.7 | ||
| China | 11.5 | 0.2 | 44.4 | 0.3 | 1432 | 12.8 | ||
| France | 0.06 | 0.0 | 8.0 | 0.3 | 35 | 1.4 | ||
| Germany | 0.5 | 0.0 | 18.6 | 0.5 | 72 | 2.1 | ||
| India | 4.6 | 0.3 | 25.4 | 0.9 | 209 | 10.0 | ||
| Indonesia | 0.5 | 0.1 | 31.3 | 3.1 | 97 | 11.3 | ||
| Italy | 0.7 | 0.0 | 17.9 | 0.9 | ||||
| Japan | 6.0 | 0.1 | 12.5 | 0.2 | 177 | 4.0 | ||
| Mexico | 3.0 | 0.3 | 13.7 | 1.1 | 54 | 4.6 | ||
| Russia | 6.0 | 0.4 | 37.2 | 2.3 | 551 | 40.3 | ||
| Saudi Arabia | 17.0 | 3.2 | 44.7 | 5.7 | 117 | 17.9 | ||
| South Africa | 0.004 | 0.0 | 4.2 | 1.1 | 45 | 14.0 | ||
| South Korea | 3.1 | 0.3 | 0.1 | 0.0 | ||||
| Turkey | 1.0 | 0.1 | 64 | 7.4 | ||||
| United Kingdom | 2.0 | 0.1 | 11.0 | 0.4 | 28 | 1.0 | ||
| United States | 6.5 | 0.0 | 27.4 | 0.2 | 649 | 3.6 | ||
| G20 total | 87.9 | 0.2 | 207.4 | 1.8 | 100.2 | 0.3 | 3602 | 8.6 |
| World | 426.7 | 5200 |
G20 is the Group of 20 countries. The members of the G20 include 19 countries (Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, the UK and the US), plus the European Union. The G20 total excludes the European Union
aBast et al. (2014). Exploration subsidies include government subsidies for exploration, public investment on exploration through state-owned enterprises, and public finance from domestic and international sources for exploration
bGross Domestic Product (GDP) in constant 2010 US$), from World Development Indicators, http://databank.worldbank.org/data/databases.aspx
cIEA (2019). The IEA estimates subsidies to fossil fuels that are consumed directly by end-users or consumed as inputs to electricity by comparing average end-user prices paid by consumers with reference prices that correspond to the full cost of supply
dWhitley et al. (2018). Fossil fuel subsidies include (1) fiscal support (budgetary transfers and tax expenditures); and (2) public finance (grants, loans, equity infusions and guarantees)
eCoady et al. (2019). The IMF estimates of post-tax fossil fuel subsidies reflect differences between actual consumer fuel prices and how much consumers would pay if prices fully reflected supply costs plus the taxes need to address environment damages, such as the costs of climate change, local pollution, traffic congestion, accidents and road damage, and revenue requirements