China Tops IMF List With $5.3 Trillion in Contributions for Global Energy Subsidies

摘要

China is the biggest contributor to global energy subsidies at $5.3 trillion, equivalent to 6.5 percent of the world's gross domestic product, the International Monetary Fund estimates. Overall, China tops the list in dollar terms, Ukraine as a percentage of gross domestic product and Qatar as measured per capita, the IMF said in a July 17 report. The bulk of what the IMF classifies as subsidies are taxes set too low to account for environmental and health costs caused by pollution, especially in countries with high coal use and populations exposed to carbon emissions. "Most energy subsidies arise from the failure to adequately charge for the cost of domestic environmental damage," the IMF said in the report. "The fiscal, environmental and welfare impacts of energy subsidy reform are potentially enormous."