The good: IMF urges end to $1.8 trillion in energy subsidies

Energy subsidies cost governments from the US to Egypt $US1.9 trillion ($1.8 trillion), discourage private investment and help wealthy consumers more than the poor, according to a study by International Monetary Fund staff.

In the report published today that covers 176 countries, the Washington-based IMF advocates a progressive increase in energy prices, accompanied by targeted measures to protect the poorest. Getting rid of subsidies could also help reduce carbon dioxide emissions by 13 per cent, it estimated.

“Energy subsidies are large and they're harmful,” Carlo Cottarelli, the IMF's director of fiscal affairs, said on a conference call with reporters. “They lead to excessive consumption of energy, they absorb public-sector resources that could be used for more useful purposes” and they “benefit the rich more than the poor,” he said.

Read more: http://www.smh.com.au/business/carbon-economy/imf-urges-end-to-18-trillion-in-energy-subsidies-20130328-2gvgt.html#ixzz2OoVAeDho

The good: IMF urges end to $1.8 trillion in energy subsidies

The good: IMF urges end to $1.8 trillion in energy subsidies

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