Fossil fuel subsidy reforms have become more fragile

Paasha Mahdavi (), Michael L. Ross () and Evelyn Simoni
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Paasha Mahdavi: University of California
Michael L. Ross: University of California
Evelyn Simoni: University of California

Nature Climate Change, 2025, vol. 15, issue 5, 569-574

Abstract: Abstract Since the mid-2010s, many governments have pledged to reduce their subsidies for fossil fuels. Yet, it is unclear whether these reforms have been implemented, with prior studies showing conflicting results. Here we collect original monthly data on the 21 countries with the largest gasoline subsidies in the 2003–2015 period and evaluate their reform efforts from 2016 to 2023. Since 2016, there has been an increase in the frequency and ambition of subsidy reforms but a drop in their durability: just 30% of the reforms survived for 12 months, and only 9% survived for 36 months. Subsidies rose for 12 countries in our sample and were virtually unchanged in the other 9. This pattern calls into question the effectiveness of recent strategies for reducing fossil fuel subsidies.

Date: 2025
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DOI: 10.1038/s41558-025-02283-4

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