{"id":279048,"date":"2023-09-16T20:30:56","date_gmt":"2023-09-16T18:30:56","guid":{"rendered":"https:\/\/climatescience.press\/?p=279048"},"modified":"2023-09-16T20:30:59","modified_gmt":"2023-09-16T18:30:59","slug":"the-mirage-of-fossil-fuel-subsidies-unraveling-the-imfs-dubious-claims","status":"publish","type":"post","link":"https:\/\/climatescience.press\/?p=279048","title":{"rendered":"The Mirage of Fossil Fuel Subsidies: Unraveling the IMF\u2019s Dubious Claims"},"content":{"rendered":"\n
\"\"<\/figure>\n\n\n\n

<\/p>\n\n\n\n

From Watts Up With That?<\/a><\/p>\n\n\n\n

Introduction<\/strong><\/p>\n\n\n\n

In the ever-evolving discourse surrounding climate change and energy policy, few topics generate as much debate as the alleged subsidies for fossil fuels. Tilak Doshi\u2019s incisive article sheds light on the International Monetary Fund\u2019s (IMF) recent claims regarding these subsidies, offering a critical examination of the figures and the motivations behind them.<\/a><\/p>\n\n\n\n

The IMF\u2019s Eye-Catching Headline<\/strong><\/p>\n\n\n\n

Legacy media, with its penchant for sensationalism, recently paraded a headline that would give even the most seasoned energy analyst pause: \u201cFossil fuels being subsidised at rate of $13 million a minute, says IMF\u201d. Citing a staggering $7 trillion in support for fossil fuels in 2022, the claim is audacious, especially when juxtaposed against global expenditures on education and military.<\/p>\n\n\n\n

\n

\u201cFor those of us who have not completely given up on tracking legacy media headlines on climate issues due to the sheer noise-to-signal ratio, there was one recently that made even the most skeptical take notice.\u201dhttps:\/\/www.forbes.com\/sites\/tilakdoshi\/2023\/09\/06\/energy-subsidy-shenanigans-the-green-imf-at-work\/?sh=da9f26c4d89d<\/a><\/p>\n<\/blockquote>\n\n\n\n

\"\"<\/figure>\n\n\n\n

The Discrepancy in Estimates<\/strong><\/p>\n\n\n\n

The IMF\u2019s figure starkly contrasts with estimates from other reputable institutions. The International Energy Agency (IEA) pegged global fossil fuel subsidies at a record $1.097 trillion in 2022, while the International Institute for Sustainable Development estimated them at $1.4 trillion for the G20 group.<\/p>\n\n\n\n

\n

\u201cWhy do these estimates vary? The differences in these estimates lie partly in varying methodologies employed to measure subsidies. They also reflect the inherently elastic nature of the subsidy concept.\u201d<\/p>\n<\/blockquote>\n\n\n\n

Understanding Subsidies: Not All Are Created Equal<\/strong><\/p>\n\n\n\n

Subsidies, in their essence, are government expenditures aimed at supporting specific sectors or demographics. They can be transparent, like price support for farmers, or opaque, favoring a particular industry or technology.<\/p>\n\n\n\n

\n

\u201cA subsidy is government expenditure, in cash or kind (for example, a tax credit), in favor of households or firms as financial redistribution in the overall interest of the public.\u201d<\/p>\n<\/blockquote>\n\n\n\n

Deciphering the IMF\u2019s \u201cSubsidies\u201d<\/strong><\/p>\n\n\n\n

The IMF\u2019s classification of fossil fuel subsidies is intriguing. They differentiate between \u201cexplicit\u201d subsidies, which refer to observable undercharging for fossil fuels, and \u201cimplicit\u201d subsidies, which account for hypothesized costs of global warming and local air pollution.<\/p>\n\n\n\n

\n

\u201cThe fossil fuel subsidies identified by the IMF in its 2023 Update on Fossil Fuel Subsidies Data refer to \u201cexplicit\u201d and \u201cimplicit\u201d subsidies.\u201d<\/p>\n<\/blockquote>\n\n\n\n

The Flawed Logic of Implicit Subsidies<\/strong><\/p>\n\n\n\n

The IMF\u2019s inclusion of \u201cimplicit\u201d subsidies is a contentious point. By factoring in the costs of global warming, such as rising sea levels, extreme weather, and the spread of diseases, the IMF inflates the subsidy figure. However, this approach is problematic, as it doesn\u2019t account for the positive externalities of fossil fuel use.<\/p>\n\n\n\n

\n

\u201cWhile the IMF takes into account negative externalities in its measure of \u201cefficient\u201d fuel prices, it does not consider well-documented positive externalities of fossil fuel use in its report.\u201d<\/p>\n<\/blockquote>\n\n\n\n

The Greening Effect of Carbon Dioxide<\/strong><\/p>\n\n\n\n

One significant positive externality of increased carbon dioxide in the atmosphere is the greening of Earth\u2019s vegetated lands. This phenomenon, which has been observed over the past 35 years, is largely attributed to rising levels of atmospheric carbon dioxide.<\/p>\n\n\n\n

\n

\u201cAn important example of the positive externality of carbon dioxide in the atmosphere is the significant greening of a quarter to half of Earth\u2019s vegetated lands over the last 35 years largely due to rising levels of atmospheric carbon dioxide.\u201d<\/p>\n<\/blockquote>\n\n\n\n

The IMF\u2019s Shift in Mandate<\/strong><\/p>\n\n\n\n

Historically, the IMF\u2019s primary role was to maintain global financial stability. However, in recent years, the institution has expanded its purview to include climate change, aligning itself with the climate agendas of various governments.<\/p>\n\n\n\n

\n

\u201cBut what is an institution set up to act as a financial watchdog and first responder to countries in financial crisis doing dishing out advice on climate change?\u201d<\/p>\n<\/blockquote>\n\n\n\n

The Dangers of Overreach<\/strong><\/p>\n\n\n\n

The IMF\u2019s foray into environmental policy is concerning. By delving into areas outside its expertise, the institution risks undermining its credibility and the efficiency of international capital markets.<\/p>\n\n\n\n

\n

\u201cClimate policy is clearly beyond the scope of any financial regulator\u2019s expertise. Given the uncertainty within the climate science community itself, there is no reason to believe that the IMF can have any greater understanding of climate risks.\u201d<\/p>\n<\/blockquote>\n\n\n\n

Conclusion<\/strong><\/p>\n\n\n\n

Tilak Doshi\u2019s article offers a compelling critique of the IMF\u2019s claims regarding fossil fuel subsidies. By highlighting the discrepancies in subsidy estimates and the flawed logic behind the IMF\u2019s methodology, Doshi underscores the need for a more nuanced and informed discussion on energy policy.<\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Legacy media, with its penchant for sensationalism, recently paraded a headline that would give even the most seasoned energy analyst pause: \u201cFossil fuels being subsidised at rate of $13 million a minute, says IMF\u201d. Citing a staggering $7 trillion in support for fossil fuels in 2022, the claim is audacious, especially when juxtaposed against global expenditures on education and military.<\/p>\n","protected":false},"author":121246920,"featured_media":279052,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":"","_crdt_document":"","advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[1],"tags":[691818056,691818076,691822663,691822620,691818299,691822664],"class_list":{"0":"post-279048","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","6":"hentry","7":"category-uncategorized","8":"tag-climate-change","9":"tag-co2","10":"tag-greening-effec","11":"tag-imf","12":"tag-subsidies","13":"tag-tilak-doshi-2","15":"fallback-thumbnail"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/09\/0International_Monetary_Fund_logo.jpg?fit=1570%2C1600&ssl=1","jetpack_likes_enabled":true,"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/paxLW1-1aAM","jetpack-related-posts":[{"id":278781,"url":"https:\/\/climatescience.press\/?p=278781","url_meta":{"origin":279048,"position":0},"title":"IMF Mad Hatters\u2019 Notion of Hydrocarbon \u201cSubsidies\u201d","author":"uwe.roland.gross","date":"14\/09\/2023","format":false,"excerpt":"The recent IMF updated report on fossil fuel subsidies took on the appearance of the Mad Hatter\u2019s tea party (Alice in Wonderland) when you look into what is claimed to be subidizing hydrocarbon energy.\u00a0 Robert Lyman explains the tricks and dishonesty running through this ongoing narrative against conventional energy sources,\u2026","rel":"","context":"In \"Climate change\"","block_context":{"text":"Climate change","link":"https:\/\/climatescience.press\/?tag=climate-change"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/09\/0thumb-1920-246304.jpg?fit=1200%2C675&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/09\/0thumb-1920-246304.jpg?fit=1200%2C675&ssl=1&resize=350%2C200 1x, 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the Guardian headline hand-wringing over $7 Trillion dollars of subsidies in support of fossil fuels. The main source of this meme is the IMF, so I went to their two year old\u2026","rel":"","context":"In \"fossil fuels\"","block_context":{"text":"fossil fuels","link":"https:\/\/climatescience.press\/?tag=fossil-fuels"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/07\/OIG-22.jpeg?fit=1024%2C1024&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/07\/OIG-22.jpeg?fit=1024%2C1024&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/07\/OIG-22.jpeg?fit=1024%2C1024&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/07\/OIG-22.jpeg?fit=1024%2C1024&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":284477,"url":"https:\/\/climatescience.press\/?p=284477","url_meta":{"origin":279048,"position":3},"title":"CCN Demand Higher Energy Prices (But Don\u2019t Tell The\u00a0Proles!)","author":"uwe.roland.gross","date":"22\/10\/2023","format":false,"excerpt":"The far left extremists and eco- nutters really want is for us all to pay much more for our energy in the name of global warming. Well, what do they want to tell us when we get a colder climate period? From NOT A LOT OF PEOPLE KNOW THAT By\u2026","rel":"","context":"In \"CCN\"","block_context":{"text":"CCN","link":"https:\/\/climatescience.press\/?tag=ccn"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/10\/5f3c4f30cb34dc2ac325aab70c566517.jpeg?fit=1200%2C673&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/10\/5f3c4f30cb34dc2ac325aab70c566517.jpeg?fit=1200%2C673&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/10\/5f3c4f30cb34dc2ac325aab70c566517.jpeg?fit=1200%2C673&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/10\/5f3c4f30cb34dc2ac325aab70c566517.jpeg?fit=1200%2C673&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/10\/5f3c4f30cb34dc2ac325aab70c566517.jpeg?fit=1200%2C673&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":324431,"url":"https:\/\/climatescience.press\/?p=324431","url_meta":{"origin":279048,"position":4},"title":"Legal Absurdities in Climate Policy: A Critical Review of Tilak Doshi\u2019s Analysis","author":"uwe.roland.gross","date":"27\/04\/2024","format":false,"excerpt":"In his recent Forbes article,\u00a0Tilak Doshi criticizes a landmark ruling by Europe\u2019s highest human rights court, which mandates countries to protect their citizens from the consequences of climate change.","rel":"","context":"In \"Climate change\"","block_context":{"text":"Climate change","link":"https:\/\/climatescience.press\/?tag=climate-change"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/04\/0njmptva.png?fit=1200%2C675&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/04\/0njmptva.png?fit=1200%2C675&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/04\/0njmptva.png?fit=1200%2C675&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/04\/0njmptva.png?fit=1200%2C675&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/04\/0njmptva.png?fit=1200%2C675&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":387402,"url":"https:\/\/climatescience.press\/?p=387402","url_meta":{"origin":279048,"position":5},"title":"Dr. Matthew Wielicki Torches the $7 Trillion Fossil Fuel Subsidy Myth","author":"uwe.roland.gross","date":"07\/07\/2025","format":false,"excerpt":"Dr. Matthew Wielicki\u2019s article, \u201cThe $7 Trillion Lie,\u201d is a scathing expos\u00e9 of what may be one of the most brazen accounting tricks in the climate policy playbook. For years, the International Monetary Fund (IMF) and its ideological allies have floated the claim that fossil fuels receive a jaw-dropping $7\u2026","rel":"","context":"In \"carbon taxes\"","block_context":{"text":"carbon taxes","link":"https:\/\/climatescience.press\/?tag=carbon-taxes"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/07\/0AQMlZ7IGASM24HbT3snlxXSFfUcfjWftL5ONGstam6oTFUv4wuSDj7Rl8Kz3glGK79MbOAlCBzHW_w80ephd-Ao-B8zVTuf5nHRwyYggKUYs_zi2CKoHuHSLG_bmBcKp2HC_Aczl6SfobUXkAqQqnFI2tT3U-Q.jpeg?fit=1200%2C1200&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/07\/0AQMlZ7IGASM24HbT3snlxXSFfUcfjWftL5ONGstam6oTFUv4wuSDj7Rl8Kz3glGK79MbOAlCBzHW_w80ephd-Ao-B8zVTuf5nHRwyYggKUYs_zi2CKoHuHSLG_bmBcKp2HC_Aczl6SfobUXkAqQqnFI2tT3U-Q.jpeg?fit=1200%2C1200&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/07\/0AQMlZ7IGASM24HbT3snlxXSFfUcfjWftL5ONGstam6oTFUv4wuSDj7Rl8Kz3glGK79MbOAlCBzHW_w80ephd-Ao-B8zVTuf5nHRwyYggKUYs_zi2CKoHuHSLG_bmBcKp2HC_Aczl6SfobUXkAqQqnFI2tT3U-Q.jpeg?fit=1200%2C1200&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/07\/0AQMlZ7IGASM24HbT3snlxXSFfUcfjWftL5ONGstam6oTFUv4wuSDj7Rl8Kz3glGK79MbOAlCBzHW_w80ephd-Ao-B8zVTuf5nHRwyYggKUYs_zi2CKoHuHSLG_bmBcKp2HC_Aczl6SfobUXkAqQqnFI2tT3U-Q.jpeg?fit=1200%2C1200&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/07\/0AQMlZ7IGASM24HbT3snlxXSFfUcfjWftL5ONGstam6oTFUv4wuSDj7Rl8Kz3glGK79MbOAlCBzHW_w80ephd-Ao-B8zVTuf5nHRwyYggKUYs_zi2CKoHuHSLG_bmBcKp2HC_Aczl6SfobUXkAqQqnFI2tT3U-Q.jpeg?fit=1200%2C1200&ssl=1&resize=1050%2C600 3x"},"classes":[]}],"_links":{"self":[{"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/posts\/279048","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/users\/121246920"}],"replies":[{"embeddable":true,"href":"https:\/\/climatescience.press\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=279048"}],"version-history":[{"count":3,"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/posts\/279048\/revisions"}],"predecessor-version":[{"id":279053,"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/posts\/279048\/revisions\/279053"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/media\/279052"}],"wp:attachment":[{"href":"https:\/\/climatescience.press\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=279048"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/climatescience.press\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=279048"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/climatescience.press\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=279048"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}