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Reforming fossil fuel subsidies: drivers, barriers and the state of progress

机译：改革化石燃料补贴：驱动因素，障碍和进展状况

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This article outlines the current state of affairs in fossil fuel subsidy reform, and highlights its contribution at the nexus of climate policy, fiscal stability and sustainable development. It discusses common definitions, provides quantitative estimates, and presents the evidence for key arguments in favour of subsidy reform. The main drivers and barriers for reform are also discussed, including the role of (low) oil prices and political economy challenges. Commitments to subsidy reform by the international community are reviewed, as well as the progress at the country level. Although fossil fuel subsidy reform indeed plays a critical role in climate policy, experience shows that the rationale for such reforms is determined in a complex environment of political economy challenges, macro-economic, fiscal and social factors, as well as external drivers such as energy prices. The article synthesizes the key principles for designing effective reforms and emphasizes that subsidy reforms cannot only yield fiscal relief, but should also contribute to long-term sustainable development objectives. Areas for future research are also identified.Policy relevanceThere is an increasingly strong international consensus that fossil fuel subsidies are detrimental in terms of economic, social and environmental sustainability. Organizations including the Intergovernmental Panel on Climate Change and theInternational Energy Agency consider fossil fuel subsidy reform a critical measure for achieving any ambitious emissions mitigation target. The reason is that these subsidies not only incentivize overconsumption of carbon-intensive energy, but directly undermine any effort to impose a price on carbon (e.g. through carbon taxes). While subsidy reform is crucial from a climate change perspective, the wide range of externalities associated with fuel subsidies also underscores the fact that reform is a vital contribution to sustainable development objectives more generally. This article emphasizes that fossil fuel subsidy reform can make a substantial contribution to climate policy, but also discusses how strongly environmental objectives are intertwined with fiscal, macro-economic, political and social factors. Although the momentum for subsidy reform is building, reforms are often designed to deliver fiscal rather than environmental benefits.
机译：本文概述了化石燃料补贴改革的当前状况，并强调了其在气候政策，财政稳定和可持续发展之间的联系。它讨论了共同的定义，提供了定量的估计，并为支持补贴改革的主要论据提供了证据。还讨论了改革的主要动力和障碍，包括（低）油价的作用和政治经济挑战。审查了国际社会对补贴改革的承诺以及国家一级的进展。尽管化石燃料补贴改革确实在气候政策中起着至关重要的作用，但经验表明，这种改革的理由是在政治经济挑战，宏观经济，财政和社会因素以及能源等外部驱动因素的复杂环境中确定的。价格。文章综合了设计有效改革的关键原则，并强调补贴改革不仅可以减轻财政负担，还应有助于实现长期可持续发展目标。政策相关性国际上越来越强烈的共识是，化石燃料补贴在经济，社会和环境的可持续性方面是有害的。政府间气候变化专门委员会和国际能源机构等组织都认为，化石燃料补贴改革是实现任何宏伟的减排目标的关键措施。原因是这些补贴不仅刺激了碳密集型能源的过度消费，而且直接破坏了对碳征收价格的任何努力（例如，通过征收碳税）。从气候变化的角度来看，补贴改革至关重要，但与燃料补贴相关的广泛外部性也凸显了这样一个事实，即改革是对更广泛的可持续发展目标的重要贡献。本文强调，化石燃料补贴改革可以对气候政策做出重大贡献，但同时也讨论了环境目标与财政，宏观经济，政治和社会因素如何紧密地交织在一起。尽管补贴改革的势头正在增强，但改革通常旨在提供财政而不是环境收益。

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