Dirty Little Secrets: Inferring Fossil-Fuel Subsidies from Patterns in Emission Intensities
Radoslaw Stefanski ()
No 201705, Discussion Paper Series, School of Economics and Finance from School of Economics and Finance, University of St Andrews
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)
New Economics Papers: this item is included in nep-ene and nep-reg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
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)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:san:wpecon:1705
Ordering information: This working paper can be ordered from
Access Statistics for this paper
More papers in Discussion Paper Series, School of Economics and Finance from School of Economics and Finance, University of St Andrews School of Economics and Finance, Castlecliffe, The Scores, Fife, KY16 9AZ. Contact information at EDIRC.
Bibliographic data for series maintained by The School of Economics and Finance ().