Ending Fossil Fuel Subsidies
The politics of saving the planet
Fossil fuel subsidies are killing both people and the planet. By encouraging excessive consumption of fossil fuels, subsidies exacerbate pollution and climate change, make violent protests more likely, and waste huge sums that could be used far better. Yet for years there has been minimal progress in eliminating fossil fuel subsidies. This book explains what fossil fuel subsidies are, how they inflict harm and what steps are being taken to reduce them. It also shows why subsidies persist and why existing efforts have been so ineffective. Drawing lessons from countries which have tried to remove fossil fuel subsidies, it explains that the fundamental challenge to reform is not technical, but political. The catastrophic COVID-19 pandemic and the tragic war in Ukraine illustrate that fossil fuel subsidy reform will only succeed where it supports the achievement of things that really matter politically - energy security, protection from climate change, better air quality, and resources to improve people’s lives. The book lays out a new agenda for action on fossil fuel subsidies, showing how a better understanding of the underlying political incentives can lead to more effective approaches to tackling this major global problem.
Published: 2023
Pages: 104
eBook: 9781788532044
Paperback: 9781788532037
Hardback: 9781788532020
1. Introduction | |||
---|---|---|---|
2. What are fossil fuel subsidies and how big are they? | |||
3. The impact of fossil fuel subsidies | |||
4. Why subsidies persist | |||
5. What is being done and why it's not working | |||
6. Countries are doing it for themselves | |||
7. COVID, War, and Build Back Worse | |||
8. A new approach to FFSR | |||
9. Conclusions |
‘Neil McCulloch's Stopping Fossil Fuel Subsidies is well worth reading because it takes seriously the complexities of the problem. McCulloch recognises the importance of this topic for plenary protection, but his primary lens is the complex politics and ground realities that lead to political lock-in in fossil fuel subsidising countries. Instead of espousing an abstract global rationality to removing fossil fuel subsidies, he focuses on the need to understand country contexts - the consumption subsidies, the political campaign contributions, the lack of credibility of alternative support - that make fossil fuel removal political fraught. This is the right starting point. Only once he gets 'beneath the surface', as he puts it, does he offer practical, manageable, steps toward reform; steps that take seriously the real political economies of real places and the need to avoid impacts on the poorest. Written in crisp and accessible prose, and sprinkled with country examples, McCulloch's is the best and most accessible text I have seen on the thorny, yet essential challenge of removing fossil fuel subsidies.’
Professor Navroz Dubash, Centre for Policy Research
‘The world faces overlapping climate, food and energy crises. Yet the governments of both rich and poor nations continue to spend billions of dollars subsidising fossil fuel subsidies. This book explains why. But it also shows how politicians and citizens together could end fossil fuel subsidies and use resources to reduce poverty and inequality worldwide.’
Professor Melissa Leach, Director, Institute of Development Studies
‘In a climate emergency why are fossil fuel subsidies still so high? The answer lies in the politics of their distribution and use. This excellent, accessible and timely overview of the topic shows why policymakers often feel trapped and fail to make the changes needed. But it also shows how engaged citizens can help to make change happen.’
Professor Peter Newell, University of Sussex, author of Power Shift
‘Understanding the politics of why fossil fuel subsidies persist is essential to the design of effective reforms. ‘Ending Fossil Fuel Subsidies’ provides a treasure trove of insights about what can practically be done to tackle the problem – it should be read by policymakers everywhere.’
Vivien Foster, Chief Infrastructure Economist, World Bank
'This excellent short book tells you why ending fossil fuel subsidies matters, why it so hard to achieve, and offers a new, politically savvy approach to tackling the problem.'
Peter Wooders, former Head of Global Subsidies Initiative, International Institute for Sustainable Development
'Climate change is an existential challenge for the planet. That makes it all the more astonishing that some governments still subsidise fossil fuels. Neil McCulloch’s wonderful, short book explains why ending fossil fuel subsidies has been challenging and charts a politically smart way in which it could be done.'
Rt Hon Helen Clark, former Prime Minister of New Zealand
‘Climate change is an existential challenge for the planet. Yet, astonishingly, governments still subsidise fossil fuels. Neil McCulloch’s wonderful, short book explains why it is hard to end fossil fuel subsidies, but also charts a politically savvy way in which it could be done.’
Ban Ki-moon, former Secretary General of the United Nations
'As the world faces a food and nutrition crisis, governments everywhere are looking for resources to protect citizens. This wonderful little book provides an answer – ending fossil fuel subsidies could release billions of dollars to safeguard nutrition across the world. Better still, the book shows how to tackle the challenge of navigating the complex politics of reform.'
Lawrence Haddad, Executive Director, Global Alliance for Improved Nutrition
Vehicle and Fuel Taxation for Transport Demand Management: Learnings from the Literature through a Development Lens
He, He
Kim, Chaeyoung
2023
https://doi.org/10.1596/1813-9450-10647 [Citations: 0]Solar Business in an Oil-Rich Country? A Socio-Technical Investigation of Solar PV Businesses in Iran
Aghlimoghadam, Leila
Sustainability, Vol. 15 (2023), Iss. 11 P.8973
https://doi.org/10.3390/su15118973 [Citations: 1]Prediction of hydrogen solubility in aqueous solution using modified mixed effects random forest based on particle swarm optimization for underground hydrogen storage
Mwakipunda, Grant Charles
Komba, Norga Alloyce
Kouassi, Allou Koffi Franck
Ayimadu, Edwin Twum
Mgimba, Melckzedeck Michael
Ngata, Mbega Ramadhani
Yu, Long
International Journal of Hydrogen Energy, Vol. 87 (2024), Iss. P.373
https://doi.org/10.1016/j.ijhydene.2024.09.054 [Citations: 0]Fossil fuel interests in Puerto Rico: Perceptions of incumbent power and discourses of delay
Kuhl, Laura
Stephens, Jennie C.
Arriaga Serrano, Carlos
Perez-Lugo, Marla
Ortiz-Garcia, Cecilio
Ellis, Ryan
Energy Research & Social Science, Vol. 111 (2024), Iss. P.103467
https://doi.org/10.1016/j.erss.2024.103467 [Citations: 1]Fuel subsidy removal in global south oil-producing economies: A review of literature
Gamette, Pius
Oteng, Clement
The Extractive Industries and Society, Vol. 18 (2024), Iss. P.101468
https://doi.org/10.1016/j.exis.2024.101468 [Citations: 0]The high price U.S green economy: A specific factor modeling
Yeboah, Osei-Agyeman
Amoah, Nicholas Mensah
Antwi-Wiafe, Kwadwo
Solar Compass, Vol. 12 (2024), Iss. P.100081
https://doi.org/10.1016/j.solcom.2024.100081 [Citations: 0]Indonesia’s Fiscal Policy in the Aftermath of the Pandemic
Indrawati, Sri Mulyani
Satriawan, Elan
Bulletin of Indonesian Economic Studies, Vol. 60 (2024), Iss. 1 P.1
https://doi.org/10.1080/00074918.2024.2335967 [Citations: 3]Towards a more transformative approach to climate finance
Newell, Peter
(2024) P.1
https://doi.org/10.1080/14693062.2024.2377730 [Citations: 0]Fueling protest? Climate change mitigation, fuel prices and protest onset
von Uexkull, Nina
Rød, Espen Geelmuyden
Svensson, Isak
World Development, Vol. 177 (2024), Iss. P.106536
https://doi.org/10.1016/j.worlddev.2024.106536 [Citations: 2]Global health 2050: the path to halving premature death by mid-century
Jamison, Dean T
Summers, Lawrence H
Chang, Angela Y
Karlsson, Omar
Mao, Wenhui
Norheim, Ole F
Ogbuoji, Osondu
Schäferhoff, Marco
Watkins, David
Adeyi, Olusoji
Alleyne, George
Alwan, Ala
Anand, Shuchi
Belachew, Ruth
Berkley, Seth F
Bertozzi, Stefano M
Bolongaita, Sarah
Bundy, Donald
Bustreo, Flavia
Castro, Marcia C
Chen, Simiao
Fan, Victoria Y
Fawole, Ayodamope
Feachem, Richard
Gebremedhin, Lia
Ghosh, Jayati
Goldie, Sue J
Gonzalez-Pier, Eduardo
Guo, Yan
Gupta, Sanjeev
Jha, Prabhat
Knaul, Felicia Marie
Kruk, Margaret E
Kurowski, Christoph
Liu, Gordon G
Makimoto, Saeda
Mataria, Awad
Nugent, Rachel
Oshitani, Hitoshi
Pablos-Mendez, Ariel
Peto, Richard
Sekhri Feachem, Neelam
Reddy, Srinath
Salti, Nisreen
Saxenian, Helen
Seyi-Olajide, Justina
Soucat, Agnes
Verguet, Stéphane
Zimmerman, Armand
Yamey, Gavin
The Lancet, Vol. 404 (2024), Iss. 10462 P.1561
https://doi.org/10.1016/S0140-6736(24)01439-9 [Citations: 0]Building Public Support for Reducing Fossil Fuel Subsidies: Evidence across 12 Middle-Income Countries
Hoy, Christopher
Kim, Yeon Soo
Nguyen, Minh
Sosa, Mariano
Tiwari, Sailesh
2023
https://doi.org/10.1596/1813-9450-10615 [Citations: 0]Energy Regulation in Africa
Effect of Fossil Fuel Subsidies on Renewable Energy Transition in Sub-Saharan African Countries
Diallo, Souleymane
Ouoba, Youmanli
Gatete, Charly
2024
https://doi.org/10.1007/978-3-031-52677-0_19 [Citations: 0]Assessing the compensation and reinvestment plans for fuel subsidy rationalization in Nigeria: A dynamic computable general equilibrium approach
Shittu, Ibrahim
Abdul Latiff, Abdul Rais
Baharudin, Siti ‘Aisyah
Energy, Vol. 293 (2024), Iss. P.130671
https://doi.org/10.1016/j.energy.2024.130671 [Citations: 1]