How Much Can CO2 Emissions Be Reduced If Fossil Fuel Subsidies Are Removed?

How Much Can CO2 Emissions Be Reduced If Fossil Fuel Subsidies Are Removed?

This paper analyzes consumers' price elasticities of demand for fossil fuels, and how a reduction of fossil fuel subsidies can lead to important reduction in CO2 emissions for various groups of countries that have relatively high fossil fuel subsidies and notably on diesel, including countries...

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Bibliographic Details
Main Author: Mundaca, Gabriela
Format: Journal Article
Published: Elsevier 2018
Subjects:
ENERGY SUBSIDIES
CARBON DIOXIDE EMISSIONS
GREENHOUSE GAS EMISSIONS
PRICE ELASTICITY
FUEL PRICES
ENERGY DEMAND
CLIMATE CHANGE
CARBON POLICY
Online Access:http://hdl.handle.net/10986/29237
id okr-10986-29237
recordtype oai_dc
spelling okr-10986-292372021-05-25T10:54:43Z How Much Can CO2 Emissions Be Reduced If Fossil Fuel Subsidies Are Removed? Mundaca, Gabriela ENERGY SUBSIDIES CARBON DIOXIDE EMISSIONS GREENHOUSE GAS EMISSIONS PRICE ELASTICITY FUEL PRICES ENERGY DEMAND CLIMATE CHANGE CARBON POLICY This paper analyzes consumers' price elasticities of demand for fossil fuels, and how a reduction of fossil fuel subsidies can lead to important reduction in CO2 emissions for various groups of countries that have relatively high fossil fuel subsidies and notably on diesel, including countries in the Middle East and North Africa (MENA). These countries continue to maintain significant levels of fuel subsidies, with Iran and Saudi Arabia being the largest contributors to CO2 emissions. This paper illustrates that fuel price policy reforms by these countries would be an important instrument for both climate and economic policies. We estimate that a reduction in subsidies to both gasoline and diesel by about 20 US$ cents per liter will lead to significant decreases in CO2 emissions, both in the MENA region and globally. In Iran, for example, the reductions could be up to 90% and 50% of current emissions generated from diesel and gasoline consumption, respectively, and for Saudi Arabia, approximately 70% and 40%, respectively. 2018-01-26T16:24:22Z 2018-01-26T16:24:22Z 2017-05 Journal Article Energy Economics 0140-9883 http://hdl.handle.net/10986/29237 CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Elsevier Publications & Research :: Journal Article Publications & Research Middle East and North Africa Middle East North Africa
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
topic ENERGY SUBSIDIES
CARBON DIOXIDE EMISSIONS
GREENHOUSE GAS EMISSIONS
PRICE ELASTICITY
FUEL PRICES
ENERGY DEMAND
CLIMATE CHANGE
CARBON POLICY
spellingShingle ENERGY SUBSIDIES
CARBON DIOXIDE EMISSIONS
GREENHOUSE GAS EMISSIONS
PRICE ELASTICITY
FUEL PRICES
ENERGY DEMAND
CLIMATE CHANGE
CARBON POLICY
Mundaca, Gabriela
How Much Can CO2 Emissions Be Reduced If Fossil Fuel Subsidies Are Removed?
geographic_facet Middle East and North Africa
Middle East
North Africa
description This paper analyzes consumers' price elasticities of demand for fossil fuels, and how a reduction of fossil fuel subsidies can lead to important reduction in CO2 emissions for various groups of countries that have relatively high fossil fuel subsidies and notably on diesel, including countries in the Middle East and North Africa (MENA). These countries continue to maintain significant levels of fuel subsidies, with Iran and Saudi Arabia being the largest contributors to CO2 emissions. This paper illustrates that fuel price policy reforms by these countries would be an important instrument for both climate and economic policies. We estimate that a reduction in subsidies to both gasoline and diesel by about 20 US$ cents per liter will lead to significant decreases in CO2 emissions, both in the MENA region and globally. In Iran, for example, the reductions could be up to 90% and 50% of current emissions generated from diesel and gasoline consumption, respectively, and for Saudi Arabia, approximately 70% and 40%, respectively.
format Journal Article
author Mundaca, Gabriela
author_facet Mundaca, Gabriela
author_sort Mundaca, Gabriela
title How Much Can CO2 Emissions Be Reduced If Fossil Fuel Subsidies Are Removed?
title_short How Much Can CO2 Emissions Be Reduced If Fossil Fuel Subsidies Are Removed?
title_full How Much Can CO2 Emissions Be Reduced If Fossil Fuel Subsidies Are Removed?
title_fullStr How Much Can CO2 Emissions Be Reduced If Fossil Fuel Subsidies Are Removed?
title_full_unstemmed How Much Can CO2 Emissions Be Reduced If Fossil Fuel Subsidies Are Removed?
title_sort how much can co2 emissions be reduced if fossil fuel subsidies are removed?
publisher Elsevier
publishDate 2018
url http://hdl.handle.net/10986/29237
_version_ 1764468838453215232

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