Dirty Little Secrets: Inferring Fossil-Fuel Subsidies from Patterns in Emission Intensities
Radoslaw Stefanski ()
No 201702, CDMA Working Paper Series from Centre for Dynamic Macroeconomic Analysis
I develop a unique database of international fossil-fuel subsidies by examining country specific patterns in carbon emission-to-GDP ratios, known as emission-intensities. For most - but not all - countries, intensities tend to be hump-shaped with income. I construct a model of structural-transformation that generates this hump-shaped intensity and then show that deviations from this pattern must be driven by distortions to sectoral-productivity and/or fossil-fuel prices. Finally, I use the calibrated-model to measure these distortions for 170 countries for 1980-2010. This methodology reveals that fossil-fuel price-distortions are large, increasing and often hidden. Furthermore, they are major contributors to higher carbon-emissions and lower GDP.
Keywords: Carbon Subsidies; Subsidies; Fossil Fuels; Pollution; Energy; Energy Intensity; Industrialization; Structural Transformation; Climate Change; Global Warming; Emissions (search for similar items in EconPapers)
JEL-codes: O1 O44 O41 Q53 Q54 H23 (search for similar items in EconPapers)
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Working Paper: Dirty Little Secrets: Inferring Fossil-Fuel Subsidies from Patterns in Emission Intensities (2017)
Working Paper: Dirty Little Secrets: Inferring Fossil-Fuel Subsidies from Patterns in Emission Intensities (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:san:cdmawp:1702
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