Chapter

Appendix A. Estimating Pretax and Posttax Global Energy Subsidies

Author(s):
Benedict Clements, David Coady, Stefania Fabrizio, Sanjeev Gupta, Trevor Alleyne, and Carlo Sdralevich
Published Date:
September 2013
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This appendix describes the data sources and methodologies used for the estimation of subsidies for petroleum products, coal, natural gas, and electricity.

Pretax Subsidies

Petroleum Products

Pretax consumer subsidies for gasoline, diesel, and kerosene are estimated as the difference between international prices, adjusted upward for transportation and distribution margins, and domestic consumer prices, for 176 countries between 2000 and 2011.1 It should be noted that all these subsidy estimates are based on comparisons for prices of final products (e.g., gasoline) rather than unrefined products (such as crude oil).

For countries for which the Organisation for Economic Co-operation and Development (OECD) has detailed data on pretax prices and petroleum product taxes, pretax prices are used to measure supply costs. For other countries, supply costs are based on spot prices from the International Energy Agency (IEA). For net oil-importers among these countries, margins are assumed to be US$0.10 per liter to cover international transport costs and another US$0.10 per liter to cover domestic distribution and retailing costs. For net oil exporters, no adjustment is made, because the international transport cost is saved when the product is consumed domestically rather than exported. This is assumed to offset domestic distribution and retailing costs.

Domestic consumer prices for petroleum products (for both firms and households) are taken from publicly available sources for OECD countries. For other countries, domestic prices were provided by country authorities to IMF staff and supplemented by survey data from the Deutsche Gesellschaft für Internationale Zusammenarbeit (Ebert and others, 2009). For gasoline, the price is for regular unleaded or other grades, based on availability. Where consumer prices were unavailable, they were imputed based on observed pass-through behavior for that country. This was done for approximately 54 countries in 2009 and one country (Venezuela) in 2011. End-of-year prices are used to estimate subsidies except for 30 countries, mostly in the Middle East and North African (MENA) region, where quarterly price data are available. Producer subsidies for petroleum products are based on OECD producer support estimates (OECD, 2012a). These estimates capture both direct budgetary transfers and preferential treatment through the tax code to petroleum producers.

The fuel-product consumption levels used to calculate total subsidies are based on OECD and IEA data and include consumption by both households and enterprises.

Coal and Natural Gas

Consumer subsidy estimates are based on IEA data for coal in 39 countries and for natural gas in 37 countries between 2007 and 2011. IMF staff estimates on natural gas subsidies are available for an additional four countries in the MENA region. This calculation measures subsidies as the difference between the reference price and the domestic price paid by households and firms. The IEA reference prices for natural gas and coal, both traded goods, are defined differently for net importers and net exporters.2 In addition, producer coal subsidies for 16 countries between 2007 and 2011 are based on OECD data.

For net importers, the reference price was defined as the price at the nearest international market, adjusted for quality differences, the cost of freight and insurance, distribution and marketing costs, and any value added tax (VAT). The price does not include excise duties. For net exporters, the reference price was calculated as the price at the nearest international market, adjusted for quality differences, less the costs of freight and insurance, plus distribution, marketing, and VAT. It should be noted that the quantities of coal and natural gas used in this calculation do not include the amount used for electricity and heat generation. To estimate pretax subsidies, the VAT is subtracted from the IEA estimates, using the standard VAT rate in the country. Producer subsidies for coal are based on OECD producer support estimates that capture the amount of tax subsidies (such as special income tax treatment) or budgetary expenditures designed to support producer incomes (OECD, 2012a).

Electricity

Given the varying availability of data, a number of different approaches are taken to measure subsidies. For 40 countries in sub-Saharan Africa, the Middle East and North Africa, and a few selected emerging economies in Europe, estimates of combined producer and consumer subsidies are compiled from various World Bank reports and IMF staff estimates; thus, they are not necessarily comparable. For these countries, subsidy estimates are based on average domestic prices and cost-recovery prices that cover production costs, investment cost, distributional loss, and the nonpayment of electricity bills. An upward adjustment is also made for the input subsidies that electricity producers may receive through their use of subsidized fossil fuel products. For 31 of these 40 countries, the latest year for which data are available is 2009.

For 37 countries, estimates of consumer price subsidies between 2007 and 2011 are taken from the IEA, based on the difference between costs (adjusted for any subsidy on fossil fuel inputs) and average domestic prices (IEA, 2011b). As these prices do not include investment cost, nonpayment of electricity, or distributional losses, the estimates may understate the subsidies. In total, the sample covers 77 countries.

Posttax Subsidies

Posttax subsidies are estimated as pretax subsidies plus

  • a corrective (or “Pigouvian”) tax, reflecting an (excise) tax on energy products to charge for externalities associated with CO2 emissions, local pollution, and (in the case of gasoline and motor diesel) other externalities such as traffic congestion and accidents; and

  • a revenue component, reflecting an (ad valorem) tax on energy products consumed by households that would be consistent with taxation of any other consumer good at the standard VAT or general sales tax (GST) rate.

Corrective Taxes

This section discusses the estimation of taxes needed to correct for externalities from petroleum products, coal, and natural gas. To avoid double counting we do not measure externalities from electricity generation, and because of the lack of available evidence, we do not measure externalities for other generation fuels.3 Owing to the lack of systematic cross-country data, the subsidy estimates do not take into account certain charges and taxes for energy that are often rationalized on environmental grounds.4 Environmental and transportation-related externalities have been quantified for the United States and just a few other countries.5

Petroleum Products

Combustion of petroleum products (gasoline, diesel, and kerosene) generates both carbon dioxide (CO2) emissions, which contribute to future global warming, and local air pollution, which elevates mortality risks for people inhaling the pollution. Other externalities associated with motor vehicle use—which we apportion to gasoline and diesel fuels—include traffic congestion and accidents and (primarily in the case of trucks) road damage. Table A.1 summarizes some estimates of motor fuel taxes to correct for these externalities that have been conducted for the United States, the United Kingdom, and Chile. The corrective tax estimate is highest for Chile, where there is a high incidence of traffic fatalities (especially for pedestrians), a large portion of nationwide driving occurs under highly congested conditions, and vehicles have relatively high emission rates.

Table A.1Corrective Motor Fuel Taxes, Selected Countries(Cents per liter, 2011 dollars)
Gasoline (cars)Diesel (trucks)
United StatesUnited KingdomChileUnited StatesChile
Total3844734065
Contribution of:
local pollution34181016
carbon87899
congestion1526191016
accidents12828312
noise00021
road damage000612
Sources: Institute for Fiscal Studies (2012); Parry (2011); Parry and Small (2005); Parry and Strand (2011).Note: The above studies estimate corrective diesel fuel taxes for the United States and Chile but not for the United Kingdom.
Sources: Institute for Fiscal Studies (2012); Parry (2011); Parry and Small (2005); Parry and Strand (2011).Note: The above studies estimate corrective diesel fuel taxes for the United States and Chile but not for the United Kingdom.

For CO2 emissions, we assume an illustrative value for global warming damages of US$34 per ton (in 2007 dollars), following the United States Interagency Working Group on Social Cost of Carbon (2013). The estimates in the literature have varied considerably, however—for example, Nordhaus (2011) estimates damages of US$12 per ton, and Stern (2006) estimates US$85 per ton. The US$34 per ton of CO2 emissions is applied to all fuels and, for example, translates into US$0.07–US$0.09 per liter of gasoline or diesel (Table A.1).

A careful assessment of the noncarbon corrective fuel taxes for other countries would take into account a variety of local factors affecting the willingness to pay for reductions in these negative externalities, including, most important, income, local emission rates, population density, travel delays, and the frequency of traffic accidents. Internationally comprehensive data on these factors are not readily available, except for income per capita. We make adjustments to the estimates of willingness to pay by comparing a given country’s income (e.g., Colombia) in purchasing parity terms with the United States, the United Kingdom, and Chile.6 An income elasticity of 0.8 is assumed between the willingness to pay for reductions in externalities and per capita income, following the OECD (OECD, 2012b). We then apply this correction to the estimates of externalities per liter described in Appendix Table A.1 for the United States, the United Kingdom, and Chile. We then take the average across the three countries to arrive at our estimate for Colombia.

Coal

To estimate the corrective tax per ton of coal for global warming damages, we first derive CO2 emissions per ton of coal, based on IEA data on coal consumption and CO2 emissions from coal by country. The corrective tax per ton of coal is then calculated by multiplying CO2 emissions per ton of coal consumption with the global warming damages of US$34 per ton of CO2 emissions.

Beyond its CO2 emissions, the other major externality associated with coal combustion is local air pollution, where the most important problem is the fine particulates (that permeate the lungs) formed from chemical reactions involving sulfur dioxide (SO2) emissions. A state-of-the-art modeling exercise for the United States by a committee of experts (National Research Council, 2009) put the local pollution damages from the average coal plant in 2005 at about US$65 (in 2010 dollars) per (short) ton. This estimate is extrapolated to other countries based on per capita income, in the same way as for petroleum products. This approach does not adjust for cross-country differences in the pollution content of coal or the use of technologies to “scrub” emissions from the smokestack.

Natural Gas

Natural gas is far less emissions-intensive than coal—it produces about half the carbon emissions per unit of energy and only very minimal SO2 emissions. For natural gas, then, only a carbon damage is applied. As with coal, the corrective tax is calculated (based on IEA data) by emissions per thousand cubic feet times US$34 per ton of CO2 emissions.

Revenue Component

Here a scenario where energy products would be taxed just like other consumer goods is considered.7 The estimates are based on VAT rates for 150 countries in 2011. For countries where VAT rates are not available or do not apply, the average VAT rate of countries with a similar level of income in the region is assumed.

Calculating Subsidies with Corrective Tax and Revenue Components

To quantify the magnitude of subsidies, the subsidy-free posttax prices are derived by applying the VAT or GST rates to both pretax prices and excise tax for externalities. The subsidy-free posttax prices are then compared with domestic prices and combined with consumption levels to compute subsidies. In the case of electricity, VAT or GST is estimated only for countries with pretax subsidies. This approach is followed because both domestic prices and cost-recovery prices are unknown for other countries. In the case of coal and natural gas, it is assumed that domestic prices in countries without pretax subsidies are the same as international reference prices.

One complication is that revenue from VAT would be effectively assessed only on energy products as final consumption goods, not on those as intermediate inputs for other consumption goods. To separate intermediate inputs from final consumption goods, we use IEA energy consumption data by industry type. It is assumed that energy products for residential use, commercial and public services, and gasoline for road use are final consumption goods. This approximation indicates that, on average, 99 percent of gasoline consumption, 7 percent of diesel consumption, 39 percent of kerosene consumption, 12 percent of coal consumption, 46 percent of natural gas consumption, and 51 percent of electricity consumption can be categorized as final consumption.

Table A.2Pretax Subsidies in Percent of GDP for Petroleum Products, Electricity, Natural Gas, and Coal, 20111(Countries sorted by income category and region)
CountryPetroleum productsElectricityNatural gasCoal
Advanced
Australia0.04n.a.0.010.00
Austria0.03n.a.n.a.n.a.
Belgium0.58n.a.n.a.n.a.
Canada0.05n.a.0.030.00
Cyprus0.00n.a.n.a.n.a.
Czech Republic0.00n.a.n.a.n.a.
Denmark0.00n.a.n.a.n.a.
Estonia0.00n.a.n.a.n.a.
Finland0.00n.a.n.a.n.a.
France0.01n.a.0.00n.a.
Germany0.01n.a.0.000.07
Greece0.09n.a.n.a.0.00
Hong Kong SAR0.00n.a.n.a.n.a.
Iceland0.00n.a.n.a.n.a.
Ireland0.00n.a.n.a.0.05
Israel0.00n.a.0.00n.a.
Italy0.00n.a.n.a.n.a.
Japan0.00n.a.0.00n.a.
Korea0.00n.a.0.000.02
Luxembourg0.00n.a.n.a.n.a.
Malta0.00n.a.n.a.n.a.
Netherlands0.00n.a.n.a.n.a.
New Zealand0.00n.a.n.a.n.a.
Norway0.01n.a.0.010.00
Portugal0.00n.a.n.a.0.00
Singapore0.00n.a.n.a.n.a.
Slovak Republic0.00n.a.n.a.0.01
Slovenia0.00n.a.n.a.0.02
Spain0.00n.a.n.a.0.03
Sweden0.00n.a.n.a.n.a.
Switzerland0.00n.a.n.a.n.a.
Taiwan Province of Chinan.a.0.220.000.03
United Kingdom0.01n.a.0.01n.a.
United States0.07n.a.0.020.00
CEE-CIS
Albania0.00n.a.n.a.n.a.
Armenia0.450.05n.a.n.a.
Azerbaijan0.840.731.160.00
Belarus0.000.26n.a.n.a.
Bosnia and Herzegovina0.00n.a.n.a.n.a.
Bulgaria0.00n.a.n.a.n.a.
Croatia0.00n.a.n.a.n.a.
Georgia0.55n.a.n.a.n.a.
Hungary0.00n.a.n.a.0.00
Kazakhstan0.650.940.150.28
Kosovo0.00n.a.n.a.n.a.
Kyrgyz Republic3.475.43n.a.n.a.
Latvia0.00n.a.n.a.n.a.
Lithuania0.00n.a.n.a.n.a.
Macedonia, FYR0.00n.a.n.a.n.a.
Moldova0.00n.a.n.a.n.a.
Mongolia0.00n.a.n.a.n.a.
Montenegro, Rep. of0.00n.a.n.a.n.a.
Poland0.00n.a.n.a.0.14
Romania0.00n.a.n.a.n.a.
Russia0.000.991.090.00
Serbia0.00n.a.n.a.n.a.
Tajikistan0.001.95n.a.n.a.
Turkey0.00n.a.n.a.0.02
Turkmenistan6.002.3214.80n.a.
Ukraine0.001.613.59n.a.
Uzbekistan0.025.7118.88n.a.
Emerging and Developing Asia
Afghanistan0.000.11n.a.n.a.
Bangladesh0.902.631.600.00
Bhutan0.51n.a.n.a.n.a.
Brunei Darussalam2.340.980.000.00
Cambodia0.00n.a.n.a.n.a.
China0.000.15n.a.n.a.
Fiji0.01n.a.n.a.n.a.
India1.250.320.170.00
Indonesia2.580.660.000.00
Kiribatin.a.n.a.n.a.n.a.
Lao P.D.R.0.00n.a.n.a.n.a.
Malaysia1.240.330.310.00
Maldives0.19n.a.n.a.n.a.
Myanmar0.54n.a.n.a.n.a.
Nepal0.00n.a.n.a.n.a.
Pakistan0.131.312.540.00
Papua New Guinean.a.n.a.n.a.n.a.
Philippines0.000.000.000.00
Samoan.a.n.a.n.a.n.a.
Solomon Islands0.00n.a.n.a.n.a.
Sri Lanka1.160.470.000.00
Thailand0.151.640.140.25
Timor-Leste0.00n.a.n.a.n.a.
Tonga0.00n.a.n.a.n.a.
Tuvalu0.00n.a.n.a.n.a.
Vanuatu0.00n.a.n.a.n.a.
Vietnam0.002.380.13n.a.
LAC
Antigua and Barbuda0.49n.a.n.a.n.a.
Argentina0.001.030.770.00
Bahamas, The0.00n.a.n.a.n.a.
Barbados0.04n.a.n.a.n.a.
Belize0.00n.a.n.a.n.a.
Bolivia2.40n.a.n.a.n.a.
Brazil0.00n.a.n.a.n.a.
Chile0.000.000.000.00
Colombia0.000.000.000.00
Costa Rica0.00n.a.n.a.n.a.
Dominica0.00n.a.n.a.n.a.
Dominican Republic0.00n.a.n.a.n.a.
Ecuador6.310.180.000.00
El Salvador0.000.000.000.00
Grenada0.00n.a.n.a.n.a.
Guatemala0.00n.a.n.a.n.a.
Guyana0.00n.a.n.a.n.a.
Haitin.a.n.a.n.a.n.a.
Honduras0.02n.a.n.a.n.a.
Jamaica0.00n.a.n.a.n.a.
Mexico0.000.000.000.00
Nicaragua0.00n.a.n.a.n.a.
Panama0.02n.a.n.a.n.a.
Paraguay0.00n.a.n.a.n.a.
Peru0.000.000.000.00
St. Kitts and Nevis0.20n.a.n.a.n.a.
St. Lucia0.19n.a.n.a.n.a.
St. Vincent and the Grenadines0.00n.a.n.a.n.a.
Suriname0.00n.a.n.a.n.a.
Trinidad and Tobago2.75n.a.n.a.n.a.
Uruguay0.00n.a.n.a.n.a.
Venezuela5.581.020.59n.a.
MENA
Algeria4.301.085.360.00
Bahrain5.372.57n.a.n.a.
Djibouti0.000.45n.a.n.a.
Egypt6.742.301.600.00
Iran4.203.614.830.00
Iraq9.921.390.250.00
Jordan2.153.81n.a.n.a.
Kuwait3.092.911.290.00
Lebanon0.074.46n.a.n.a.
Libya6.401.850.590.00
Mauritania0.000.850.80n.a.
Morocco0.66n.a.n.a.n.a.
Oman3.010.762.20n.a.
Qatar1.221.201.070.00
Saudi Arabia7.462.48n.a.0.00
Sudan1.37n.a.n.a.n.a.
Syrian.a.n.a.n.a.n.a.
Tunisia0.772.23n.a.n.a.
United Arab Emirates0.481.863.37n.a.
Yemen4.671.33n.a.n.a.
Sub-Saharan Africa
Angola1.300.270.000.00
Benin0.001.78n.a.n.a.
Botswana0.020.36n.a.n.a.
Burkina Faso0.000.78n.a.n.a.
Burundi0.00n.a.n.a.n.a.
Cameroon1.692.16n.a.n.a.
Cape Verde0.002.17n.a.n.a.
Central African Republic0.00n.a.n.a.n.a.
Chad0.000.00n.a.n.a.
Comorosn.a.n.a.n.a.n.a.
Congo, Democratic Republic of the0.001.57n.a.n.a.
Congo, Republic of1.202.62n.a.n.a.
Côte d’Ivoire0.002.72n.a.n.a.
Equatorial Guinea0.28n.a.n.a.n.a.
Eritrean.a.n.a.n.a.n.a.
Ethiopia0.191.24n.a.n.a.
Gabon0.16n.a.n.a.n.a.
Gambia, The0.00n.a.n.a.n.a.
Ghana0.002.86n.a.n.a.
Guinea0.00n.a.n.a.n.a.
Guinea-Bissau0.00n.a.n.a.n.a.
Kenya0.000.00n.a.n.a.
Lesotho0.000.85n.a.n.a.
Liberia0.00n.a.n.a.n.a.
Madagascar0.110.89n.a.n.a.
Malawi0.001.60n.a.n.a.
Mali0.000.93n.a.n.a.
Mauritius0.00n.a.n.a.n.a.
Mozambique0.004.93n.a.n.a.
Namibia0.000.52n.a.n.a.
Niger0.000.00n.a.n.a.
Nigeria1.421.310.000.00
Rwanda0.000.29n.a.n.a.
Senegal0.002.26n.a.n.a.
Seychelles0.00n.a.n.a.n.a.
Sierra Leone0.00n.a.n.a.n.a.
South Africa0.010.550.000.00
Swaziland0.00n.a.n.a.n.a.
São Tomé and Príncipe0.33n.a.n.a.n.a.
Tanzania0.002.10n.a.n.a.
Togo0.00n.a.n.a.n.a.
Uganda0.001.32n.a.n.a.
Zambia0.004.85n.a.n.a.
Zimbabwen.a.14.52n.a.n.a.
World0.320.220.170.01
Sources: Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ); International Energy Agency (IEA), World Energy Outlook 2012; IMF staff estimates; IMF, World Economic Outlook; Organisation for Economic Co-operation and Development (OECD); World Bank.Note: Values are rounded to the nearest one-hundredth percent; electricity subsidies are taken from 2009 for 31 countries, and natural gas data are taken from 2010 for four countries. World estimates are calculated as identified subsidies divided by global GDP. n.a. = not applicable; CEE-CIS = Central and Eastern Europe and Commonwealth of Independent States; LAC = Latin America and the Caribbean; MENA = Middle East and North Africa.

These subsidy estimates may differ from those in the country budget documents because of the methodologies described in this appendix.

Sources: Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ); International Energy Agency (IEA), World Energy Outlook 2012; IMF staff estimates; IMF, World Economic Outlook; Organisation for Economic Co-operation and Development (OECD); World Bank.Note: Values are rounded to the nearest one-hundredth percent; electricity subsidies are taken from 2009 for 31 countries, and natural gas data are taken from 2010 for four countries. World estimates are calculated as identified subsidies divided by global GDP. n.a. = not applicable; CEE-CIS = Central and Eastern Europe and Commonwealth of Independent States; LAC = Latin America and the Caribbean; MENA = Middle East and North Africa.

These subsidy estimates may differ from those in the country budget documents because of the methodologies described in this appendix.

Table A.3Pretax Subsidies in Percent of Government Revenues for Petroleum Products, Electricity, Natural Gas, and Coal, 20111(Countries sorted by income category and region)
CountryPetroleum productsElectricityNatural gasCoal
Advanced
Australia0.13n.a.0.020.01
Austria0.07n.a.n.a.n.a.
Belgium1.18n.a.n.a.n.a.
Canada0.13n.a.0.070.00
Cyprus0.00n.a.n.a.n.a.
Czech Republic0.00n.a.n.a.n.a.
Denmark0.00n.a.n.a.n.a.
Estonia0.00n.a.n.a.n.a.
Finland0.00n.a.n.a.n.a.
France0.01n.a.0.00n.a.
Germany0.03n.a.0.000.17
Greece0.23n.a.n.a.0.01
Hong Kong SAR0.00n.a.n.a.n.a.
Iceland0.00n.a.n.a.n.a.
Ireland0.00n.a.n.a.0.14
Israel0.00n.a.0.01n.a.
Italy0.00n.a.n.a.n.a.
Japan0.01n.a.0.00n.a.
Korea0.00n.a.0.000.06
Luxembourg0.00n.a.n.a.n.a.
Malta0.00n.a.n.a.n.a.
Netherlands0.00n.a.n.a.n.a.
New Zealand0.00n.a.n.a.n.a.
Norway0.02n.a.0.020.00
Portugal0.00n.a.n.a.0.01
Singapore0.00n.a.n.a.n.a.
Slovak Republic0.00n.a.n.a.0.02
Slovenia0.00n.a.n.a.0.05
Spain0.00n.a.n.a.0.08
Sweden0.00n.a.n.a.n.a.
Switzerland0.00n.a.n.a.n.a.
Taiwan Province of Chinan.a.1.160.000.17
United Kingdom0.03n.a.0.02n.a.
United States0.22n.a.0.060.01
CEE-CIS
Albania0.00n.a.n.a.n.a.
Armenia2.060.22n.a.n.a.
Azerbaijan1.851.592.540.00
Belarus0.000.62n.a.n.a.
Bosnia and Herzegovina0.00n.a.n.a.n.a.
Bulgaria0.00n.a.n.a.n.a.
Croatia0.00n.a.n.a.n.a.
Georgia1.95n.a.n.a.n.a.
Hungary0.00n.a.n.a.0.00
Kazakhstan2.333.380.551.01
Kosovo0.00n.a.n.a.n.a.
Kyrgyz Republic10.4116.30n.a.n.a.
Latvia0.00n.a.n.a.n.a.
Lithuania0.00n.a.n.a.n.a.
Macedonia, FYR0.00n.a.n.a.n.a.
Moldova0.00n.a.n.a.n.a.
Mongolia0.00n.a.n.a.n.a.
Montenegro, Rep. of0.00n.a.n.a.n.a.
Poland0.00n.a.n.a.0.36
Romania0.00n.a.n.a.n.a.
Russia0.002.582.850.00
Serbia0.00n.a.n.a.n.a.
Tajikistan0.007.85n.a.n.a.
Turkey0.00n.a.n.a.0.07
Turkmenistan31.8412.2978.48n.a.
Ukraine0.003.808.47n.a.
Uzbekistan0.0614.2046.94n.a.
Emerging and Developing Asia
Afghanistan0.000.52n.a.n.a.
Bangladesh7.5622.1213.450.00
Bhutan1.39n.a.n.a.n.a.
Brunei Darussalam3.771.570.000.00
Cambodia0.00n.a.n.a.n.a.
China0.000.68n.a.n.a.
Fiji0.05n.a.n.a.n.a.
India6.751.720.900.00
Indonesia14.513.690.000.00
Kiribatin.a.n.a.n.a.n.a.
Lao P.D.R.0.00n.a.n.a.n.a.
Malaysia5.671.491.410.00
Maldives0.61n.a.n.a.n.a.
Myanmar9.35n.a.n.a.n.a.
Nepal0.00n.a.n.a.n.a.
Pakistan1.0210.2319.890.00
Papua New Guinean.a.n.a.n.a.n.a.
Philippines0.000.000.000.00
Samoan.a.n.a.n.a.n.a.
Solomon Islands0.00n.a.n.a.n.a.
Sri Lanka7.993.260.000.00
Thailand0.667.240.611.08
Timor-Leste0.00n.a.n.a.n.a.
Tonga0.00n.a.n.a.n.a.
Tuvalu0.00n.a.n.a.n.a.
Vanuatu0.00n.a.n.a.n.a.
Vietnam0.008.590.47n.a.
LAC
Antigua and Barbuda2.36n.a.n.a.n.a.
Argentina0.002.762.060.00
Bahamas, The0.00n.a.n.a.n.a.
Barbados0.10n.a.n.a.n.a.
Belize0.00n.a.n.a.n.a.
Bolivia6.62n.a.n.a.n.a.
Brazil0.00n.a.n.a.n.a.
Chile0.000.000.000.00
Colombia0.000.000.000.00
Costa Rica0.00n.a.n.a.n.a.
Dominica0.00n.a.n.a.n.a.
Dominican Republic0.00n.a.n.a.n.a.
Ecuador15.440.440.000.00
El Salvador0.000.000.000.00
Grenada0.00n.a.n.a.n.a.
Guatemala0.00n.a.n.a.n.a.
Guyana0.00n.a.n.a.n.a.
Haitin.a.n.a.n.a.n.a.
Honduras0.09n.a.n.a.n.a.
Jamaica0.00n.a.n.a.n.a.
Mexico0.000.000.000.00
Nicaragua0.00n.a.n.a.n.a.
Panama0.08n.a.n.a.n.a.
Paraguay0.00n.a.n.a.n.a.
Peru0.000.000.000.00
St. Kitts and Nevis0.55n.a.n.a.n.a.
St. Lucia0.68n.a.n.a.n.a.
St. Vincent and the Grenadines0.00n.a.n.a.n.a.
Suriname0.00n.a.n.a.n.a.
Trinidad and Tobago7.49n.a.n.a.n.a.
Uruguay0.00n.a.n.a.n.a.
Venezuela15.832.891.66n.a.
MENA
Algeria10.842.7213.520.00
Bahrain18.969.08n.a.n.a.
Djibouti0.001.32n.a.n.a.
Egypt30.6110.447.250.00
Iran16.9514.5419.450.00
Iraq12.691.780.320.00
Jordan8.1314.41n.a.n.a.
Kuwait4.574.301.910.00
Lebanon0.3218.96n.a.n.a.
Libya16.644.801.530.00
Mauritania0.003.092.91n.a.
Morocco2.40n.a.n.a.n.a.
Oman7.281.835.31n.a.
Qatar3.173.122.780.00
Saudi Arabia14.004.660.000.00
Sudan7.33n.a.n.a.n.a.
Syrian.a.n.a.n.a.n.a.
Tunisia2.427.02n.a.n.a.
United Arab Emirates1.385.329.61n.a.
Yemen19.035.42n.a.n.a.
Sub-Saharan Africa
Angola2.670.550.000.00
Benin0.008.84n.a.n.a.
Botswana0.071.21n.a.n.a.
Burkina Faso0.003.59n.a.n.a.
Burundi0.00n.a.n.a.n.a.
Cameroon8.9211.42n.a.n.a.
Cape Verde0.008.66n.a.n.a.
Central African Republic0.00n.a.n.a.n.a.
Chad0.000.00n.a.n.a.
Comorosn.a.n.a.n.a.n.a.
Congo, Democratic Republic of the0.005.75n.a.n.a.
Congo, Republic of2.826.17n.a.n.a.
Côte d’Ivoire0.0013.43n.a.n.a.
Equatorial Guinea0.92n.a.n.a.n.a.
Eritrean.a.n.a.n.a.n.a.
Ethiopia1.127.40n.a.n.a.
Gabon0.56n.a.n.a.n.a.
Gambia, The0.00n.a.n.a.n.a.
Ghana0.0014.70n.a.n.a.
Guinea0.00n.a.n.a.n.a.
Guinea-Bissau0.00n.a.n.a.n.a.
Kenya0.000.00n.a.n.a.
Lesotho0.001.61n.a.n.a.
Liberia0.00n.a.n.a.n.a.
Madagascar0.957.86n.a.n.a.
Malawi0.005.43n.a.n.a.
Mali0.003.98n.a.n.a.
Mauritius0.00n.a.n.a.n.a.
Mozambique0.0016.40n.a.n.a.
Namibia0.001.82n.a.n.a.
Niger0.000.00n.a.n.a.
Nigeria4.824.440.000.00
Rwanda0.001.14n.a.n.a.
Senegal0.0010.08n.a.n.a.
Seychelles0.00n.a.n.a.n.a.
Sierra Leone0.00n.a.n.a.n.a.
South Africa0.022.010.000.00
Swaziland0.00n.a.n.a.n.a.
São Tomé and Príncipe0.90n.a.n.a.n.a.
Tanzania0.009.50n.a.n.a.
Togo0.00n.a.n.a.n.a.
Uganda0.008.95n.a.n.a.
Zambia0.0021.59n.a.n.a.
Zimbabwen.a.47.02n.a.n.a.
World0.940.640.500.03
Sources: GIZ; IEA, World Energy Outlook 2012; IMF staff estimates; IMF, World Economic Outlook; OECD; World Bank.Note: Values are rounded to the nearest one-hundredth percent; electricity subsidies are taken from 2009 for 31 countries, and natural gas data are taken from 2010 for four countries. World estimates are calculated as identified subsidies divided by global government revenues. n.a. = not applicable; CEE-CIS = Central and Eastern Europe and Commonwealth of Independent States; LAC = Latin America and the Caribbean; MENA = Middle East and North Africa.

These subsidy estimates may differ from those in the country budget documents because of the methodologies described in this appendix.

Sources: GIZ; IEA, World Energy Outlook 2012; IMF staff estimates; IMF, World Economic Outlook; OECD; World Bank.Note: Values are rounded to the nearest one-hundredth percent; electricity subsidies are taken from 2009 for 31 countries, and natural gas data are taken from 2010 for four countries. World estimates are calculated as identified subsidies divided by global government revenues. n.a. = not applicable; CEE-CIS = Central and Eastern Europe and Commonwealth of Independent States; LAC = Latin America and the Caribbean; MENA = Middle East and North Africa.

These subsidy estimates may differ from those in the country budget documents because of the methodologies described in this appendix.

Table A.4Posttax Subsidies as Percent of GDP for Petroleum Products, Electricity, Natural Gas, and Coal, 20111(Countries sorted by income category and region)
CountryPetroleum productsElectricityNatural gasCoal
Advanced
Australia0.61n.a.0.190.68
Austria0.04n.a.0.170.20
Belgium0.58n.a.0.290.11
Canada1.16n.a.0.470.26
Cyprus0.09n.a.n.a.0.01
Czech Republic0.00n.a.0.371.75
Denmark0.00n.a.0.110.22
Estonia0.00n.a.0.213.34
Finland0.00n.a.0.110.42
France0.01n.a.0.140.08
Germany0.01n.a.0.190.56
Greece0.09n.a.0.110.58
Hong Kong SAR0.42n.a.0.120.85
Iceland0.00n.a.n.a.0.14
Ireland0.00n.a.0.190.27
Israel0.00n.a.0.150.69
Italy0.00n.a.0.310.14
Japan0.10n.a.0.170.41
Korea0.06n.a.0.341.55
Luxembourg22.62n.a.0.170.03
Malta0.00n.a.n.a.n.a.
Netherlands0.00n.a.0.420.20
New Zealand0.77n.a.0.180.20
Norway0.01n.a.0.110.04
Portugal0.00n.a.0.170.19
Singapore0.49n.a.0.270.01
Slovak Republic0.00n.a.0.500.79
Slovenia0.00n.a.0.130.64
Spain0.00n.a.0.180.21
Sweden0.00n.a.0.020.09
Switzerland0.00n.a.0.040.01
Taiwan Province of Chinan.a.0.280.252.06
United Kingdom0.01n.a.0.320.28
United States1.58n.a.0.360.78
CEE-CIS
Albania0.00n.a.0.010.02
Armenia0.930.401.19n.a.
Azerbaijan2.390.912.190.00
Belarus0.001.083.54n.a.
Bosnia and Herzegovina0.00n.a.0.114.66
Bulgaria0.00n.a.0.382.91
Croatia0.00n.a.0.450.29
Georgia0.86n.a.0.610.08
Hungary0.00n.a.0.780.39
Kazakhstan2.360.971.323.64
Kosovo0.00n.a.n.a.0.02
Kyrgyz Republic7.285.710.401.94
Latvia0.00n.a.0.580.14
Lithuania0.00n.a.0.550.14
Macedonia, FYR0.00n.a.0.131.77
Moldova0.00n.a.2.160.17
Mongolia0.00n.a.n.a.6.36
Montenegro, Rep. of0.00n.a.n.a.0.00
Poland0.00n.a.0.262.33
Romania0.00n.a.0.580.74
Russia1.641.273.071.36
Serbia0.00n.a.0.523.33
Tajikistan0.162.500.320.20
Turkey0.00n.a.0.450.86
Turkmenistan8.592.3921.94n.a.
Ukraine0.311.858.243.71
Uzbekistan1.105.9528.030.38
Emerging and Developing Asia
Afghanistan0.140.19n.a.n.a.
Bangladesh1.463.012.940.12
Bhutan1.36n.a.n.a.n.a.
Brunei Darussalam6.061.361.640.00
Cambodia0.00n.a.n.a.0.00
China0.000.300.134.41
Fiji0.16n.a.n.a.n.a.
India2.020.360.412.63
Indonesia3.470.720.440.65
Kiribatin.a.n.a.n.a.n.a.
Lao P.D.R.0.00n.a.n.a.n.a.
Malaysia5.380.561.020.98
Maldives1.74n.a.n.a.n.a.
Myanmar1.04n.a.n.a.n.a.
Nepal0.28n.a.n.a.0.16
Pakistan1.141.633.670.22
Papua New Guinean.a.n.a.n.a.n.a.
Philippines0.310.000.110.65
Samoan.a.n.a.n.a.n.a.
Solomon Islands0.00n.a.n.a.n.a.
Sri Lanka2.170.750.000.04
Thailand1.541.760.991.06
Timor-Leste0.05n.a.n.a.n.a.
Tonga0.00n.a.n.a.n.a.
Tuvalu0.00n.a.n.a.n.a.
Vanuatu0.00n.a.n.a.n.a.
Vietnam0.832.640.781.60
LAC
Antigua and Barbuda1.77n.a.n.a.n.a.
Argentina0.351.151.560.13
Bahamas, The1.57n.a.n.a.n.a.
Barbados0.61n.a.n.a.n.a.
Belize0.00n.a.n.a.n.a.
Bolivia5.18n.a.1.02n.a.
Brazil0.11n.a.0.110.10
Chile1.360.000.120.42
Colombia0.000.000.250.27
Costa Rica0.47n.a.n.a.0.03
Dominica1.30n.a.n.a.n.a.
Dominican Republic0.06n.a.0.170.18
Ecuador10.030.330.070.00
El Salvador0.900.000.000.00
Grenada1.12n.a.n.a.n.a.
Guatemala0.87n.a.n.a.0.48
Guyana1.20n.a.n.a.n.a.
Haitin.a.n.a.n.a.n.a.
Honduras0.67n.a.n.a.0.01
Jamaica0.60n.a.n.a.0.06
Mexico2.140.000.420.16
Nicaragua0.11n.a.n.a.n.a.
Panama2.40n.a.n.a.0.02
Paraguay0.00n.a.n.a.n.a.
Peru0.330.000.360.04
St. Kitts and Nevis1.35n.a.n.a.n.a.
St. Lucia0.99n.a.n.a.n.a.
St. Vincent and the Grenadines0.99n.a.n.a.n.a.
Suriname0.00n.a.n.a.n.a.
Trinidad and Tobago5.95n.a.6.51n.a.
Uruguay0.00n.a.0.020.00
Venezuela8.311.271.250.00
MENA
Algeria6.311.156.370.00
Bahrain10.262.962.74n.a.
Djibouti0.240.51n.a.n.a.
Egypt8.842.503.050.07
Iran7.983.647.100.02
Iraq14.911.570.340.00
Jordan5.654.100.50n.a.
Kuwait7.013.122.050.00
Lebanon3.934.610.240.15
Libya9.112.331.900.00
Mauritania1.060.930.80n.a.
Morocco3.04n.a.0.050.46
Oman6.730.943.86n.a.
Qatar5.511.262.080.00
Saudi Arabia13.572.790.960.00
Sudan2.40n.a.n.a.n.a.
Syrian.a.n.a.n.a.n.a.
Tunisia2.752.431.01n.a.
United Arab Emirates3.582.044.670.04
Yemen7.251.471.53n.a.
Sub-Saharan Africa
Angola2.650.310.050.00
Benin0.472.01n.a.n.a.
Botswana1.050.48n.a.0.45
Burkina Faso0.330.94n.a.n.a.
Burundi0.00n.a.n.a.n.a.
Cameroon2.572.410.07n.a.
Cape Verde0.002.57n.a.n.a.
Central African Republic0.00n.a.n.a.n.a.
Chad0.000.02n.a.n.a.
Comorosn.a.n.a.n.a.n.a.
Congo, Democratic Republic of the0.001.800.000.13
Congo, Republic of2.212.660.01n.a.
Côte d’Ivoire0.002.960.56n.a.
Equatorial Guinea2.02n.a.n.a.n.a.
Eritrean.a.n.a.n.a.n.a.
Ethiopia0.681.32n.a.n.a.
Gabon0.88n.a.0.09n.a.
Gambia, The0.00n.a.n.a.n.a.
Ghana0.593.02n.a.n.a.
Guinea0.00n.a.n.a.n.a.
Guinea-Bissau0.00n.a.n.a.n.a.
Kenya0.610.16n.a.0.01
Lesotho0.050.94n.a.n.a.
Liberia0.02n.a.n.a.n.a.
Madagascar0.450.98n.a.n.a.
Malawi0.172.01n.a.n.a.
Mali0.190.99n.a.n.a.
Mauritius0.00n.a.n.a.n.a.
Mozambique0.275.070.130.02
Namibia0.130.52n.a.0.10
Niger0.240.17n.a.n.a.
Nigeria2.161.340.280.00
Rwanda0.000.39n.a.n.a.
Senegal0.002.510.010.23
Seychelles0.00n.a.n.a.n.a.
Sierra Leone0.63n.a.n.a.n.a.
South Africa0.400.730.003.24
Swaziland0.00n.a.n.a.n.a.
São Tomé and Príncipe0.63n.a.n.a.n.a.
Tanzania0.002.260.270.04
Togo0.85n.a.n.a.n.a.
Uganda0.001.45n.a.n.a.
Zambia0.004.96n.a.0.00
Zimbabwen.a.14.89n.a.3.08
World1.040.260.541.02
Sources: GIZ; IEA, World Energy Outlook 2012; IMF staff estimates; IMF, World Economic Outlook; OECD; World Bank.Note: Values are rounded to the nearest one-hundredth percent; electricity subsidies are taken from 2009 for 31 countries, and natural gas data are taken from 2010 for four countries. World estimates are calculated as identified subsidies divided by global GDP. n.a. = not applicable; CEE-CIS = Central and Eastern Europe and Commonwealth of Independent States; LAC = Latin America and the Caribbean; MENA = Middle East and North Africa.

Owing to the lack of systematic cross-country data, the subsidy estimates do not take into account certain charges and taxes for energy that are often rationalized on environmental grounds. Principally, these include regional or country-level carbon pricing programs, road user charges (e.g., mileage-based tolls for trucks in Germany), and excise taxes on electricity consumption and vehicle sales. For example, the European Union Emissions Trading System imposes a carbon tax on certain greenhouse gases that are emitted by factories, power plants, and other installations in the system. The current prevailing prices, however, are only a small fraction of estimated damages, and only about half of emissions are covered under the scheme. To take another example, incorporating the road user charges for diesel vehicles in New Zealand would lower our posttax energy subsidy estimates for that country by US$0.8 billion.

The estimate for Luxembourg reflects, to a large extent, cross-border sales of petroleum products to neighboring countries, with buyers attracted by lower tax rates.

Sources: GIZ; IEA, World Energy Outlook 2012; IMF staff estimates; IMF, World Economic Outlook; OECD; World Bank.Note: Values are rounded to the nearest one-hundredth percent; electricity subsidies are taken from 2009 for 31 countries, and natural gas data are taken from 2010 for four countries. World estimates are calculated as identified subsidies divided by global GDP. n.a. = not applicable; CEE-CIS = Central and Eastern Europe and Commonwealth of Independent States; LAC = Latin America and the Caribbean; MENA = Middle East and North Africa.

Owing to the lack of systematic cross-country data, the subsidy estimates do not take into account certain charges and taxes for energy that are often rationalized on environmental grounds. Principally, these include regional or country-level carbon pricing programs, road user charges (e.g., mileage-based tolls for trucks in Germany), and excise taxes on electricity consumption and vehicle sales. For example, the European Union Emissions Trading System imposes a carbon tax on certain greenhouse gases that are emitted by factories, power plants, and other installations in the system. The current prevailing prices, however, are only a small fraction of estimated damages, and only about half of emissions are covered under the scheme. To take another example, incorporating the road user charges for diesel vehicles in New Zealand would lower our posttax energy subsidy estimates for that country by US$0.8 billion.

The estimate for Luxembourg reflects, to a large extent, cross-border sales of petroleum products to neighboring countries, with buyers attracted by lower tax rates.

Table A.5Posttax Subsidies in Percent of Government Revenues for Petroleum Products, Electricity, Natural Gas, and Coal, 20111(Countries sorted by income category and region)
CountryPetroleum productsElectricityNatural gasCoal
Advanced
Australia1.90n.a.0.602.14
Austria0.07n.a.0.360.42
Belgium1.18n.a.0.580.23
Canada3.04n.a.1.220.68
Cyprus0.22n.a.n.a.0.02
Czech Republic0.00n.a.0.914.33
Denmark0.00n.a.0.210.40
Estonia0.00n.a.0.487.57
Finland0.00n.a.0.200.79
France0.01n.a.0.270.16
Germany0.03n.a.0.421.25
Greece0.23n.a.0.281.41
Hong Kong SAR1.74n.a.0.483.50
Iceland0.00n.a.n.a.0.33
Ireland0.00n.a.0.550.79
Israel0.00n.a.0.381.70
Italy0.00n.a.0.680.31
Japan0.34n.a.0.541.33
Korea0.25n.a.1.466.63
Luxembourg26.33n.a.0.410.08
Malta0.00n.a.n.a.n.a.
Netherlands0.00n.a.0.930.45
New Zealand2.66n.a.0.620.68
Norway0.02n.a.0.190.08
Portugal0.00n.a.0.380.43
Singapore1.97n.a.1.100.05
Slovak Republic0.00n.a.1.542.43
Slovenia0.00n.a.0.321.53
Spain0.00n.a.0.510.58
Sweden0.00n.a.0.040.19
Switzerland0.00n.a.0.120.02
Taiwan Province of Chinan.a.1.481.3410.94
United Kingdom0.03n.a.0.860.76
United States5.03n.a.1.162.49
CEE-CIS
Albania0.00n.a.0.060.07
Armenia4.251.815.44n.a.
Azerbaijan5.252.004.810.00
Belarus0.002.588.43n.a.
Bosnia and Herzegovina0.00n.a.0.2310.03
Bulgaria0.00n.a.1.178.98
Croatia0.00n.a.1.230.79
Georgia3.04n.a.2.160.27
Hungary0.00n.a.1.480.73
Kazakhstan8.513.494.7413.09
Kosovo0.00n.a.n.a.0.06
Kyrgyz Republic21.8417.131.195.83
Latvia0.00n.a.1.620.38
Lithuania0.00n.a.1.680.42
Macedonia, FYR0.00n.a.0.446.16
Moldova0.00n.a.5.890.46
Mongolia0.00n.a.n.a.16.02
Montenegro, Rep. of0.00n.a.n.a.0.00
Poland0.00n.a.0.686.06
Romania0.00n.a.1.842.34
Russia4.273.308.013.54
Serbia0.00n.a.1.278.12
Tajikistan0.6510.041.280.81
Turkey0.00n.a.1.292.48
Turkmenistan45.5912.67116.38n.a.
Ukraine0.734.3619.458.76
Uzbekistan2.7214.8069.680.94
Emerging and Developing Asia
Afghanistan0.660.86n.a.n.a.
Bangladesh12.2725.2524.721.02
Bhutan3.72n.a.n.a.n.a.
Brunei Darussalam9.732.192.640.00
Cambodia0.00n.a.n.a.0.01
China0.001.340.5819.45
Fiji0.62n.a.n.a.n.a.
India10.911.972.2114.17
Indonesia19.464.042.453.65
Kiribatin.a.n.a.n.a.n.a.
Lao P.D.R.0.00n.a.n.a.n.a.
Malaysia24.612.544.664.46
Maldives5.57n.a.n.a.n.a.
Myanmar18.11n.a.n.a.n.a.
Nepal1.57n.a.n.a.0.89
Pakistan8.9312.7628.681.72
Papua New Guinean.a.n.a.n.a.n.a.
Philippines1.800.000.643.74
Samoan.a.n.a.n.a.n.a.
Solomon Islands0.00n.a.n.a.n.a.
Sri Lanka14.965.170.000.27
Thailand6.807.774.384.68
Timor-Leste0.06n.a.n.a.n.a.
Tonga0.00n.a.n.a.n.a.
Tuvalu0.00n.a.n.a.n.a.
Vanuatu0.00n.a.n.a.n.a.
Vietnam3.009.542.815.78
LAC
Antigua and Barbuda8.58n.a.n.a.n.a.
Argentina0.953.084.180.34
Bahamas, The8.75n.a.n.a.n.a.
Barbados1.70n.a.n.a.n.a.
Belize0.00n.a.n.a.n.a.
Bolivia14.31n.a.2.83n.a.
Brazil0.33n.a.0.300.28
Chile5.490.000.501.70
Colombia0.000.000.931.00
Costa Rica3.38n.a.n.a.0.19
Dominica4.18n.a.n.a.n.a.
Dominican Republic0.45n.a.1.241.34
Ecuador24.550.800.180.00
El Salvador5.050.000.000.00
Grenada5.02n.a.n.a.n.a.
Guatemala7.33n.a.n.a.4.09
Guyana4.33n.a.n.a.n.a.
Haitin.a.n.a.n.a.n.a.
Honduras2.85n.a.n.a.0.05
Jamaica2.38n.a.n.a.0.22
Mexico9.690.001.880.74
Nicaragua0.33n.a.n.a.n.a.
Panama9.65n.a.n.a.0.06
Paraguay0.00n.a.n.a.n.a.
Peru1.530.001.650.20
St. Kitts and Nevis3.62n.a.n.a.n.a.
St. Lucia3.60n.a.n.a.n.a.
St. Vincent and the Grenadines3.79n.a.n.a.n.a.
Suriname0.00n.a.n.a.n.a.
Trinidad and Tobago16.19n.a.17.71n.a.
Uruguay0.00n.a.0.050.00
Venezuela23.583.593.560.01
MENA
Algeria15.912.8916.080.00
Bahrain36.2510.449.67n.a.
Djibouti0.691.49n.a.n.a.
Egypt40.1611.3513.870.32
Iran32.1714.6628.620.09
Iraq19.082.010.430.00
Jordan21.3615.491.90n.a.
Kuwait10.384.623.030.00
Lebanon16.6919.591.040.62
Libya23.666.044.940.00
Mauritania3.873.372.91n.a.
Morocco11.03n.a.0.191.68
Oman16.262.279.33n.a.
Qatar14.303.265.380.00
Saudi Arabia25.475.231.800.00
Sudan12.83n.a.n.a.n.a.
Syrian.a.n.a.n.a.n.a.
Tunisia8.677.663.17n.a.
United Arab Emirates10.215.8213.330.11
Yemen29.545.996.23n.a.
Sub-Saharan Africa
Angola5.420.640.110.00
Benin2.369.98n.a.n.a.
Botswana3.541.64n.a.1.53
Burkina Faso1.504.30n.a.n.a.
Burundi0.00n.a.n.a.n.a.
Cameroon13.6212.760.37n.a.
Cape Verde0.0010.23n.a.n.a.
Central African Republic0.00n.a.n.a.n.a.
Chad0.000.06n.a.n.a.
Comorosn.a.n.a.n.a.n.a.
Congo, Democratic Republic of the0.006.570.020.46
Congo, Republic of5.206.250.03n.a.
Côte d’Ivoire0.0014.592.79n.a.
Equatorial Guinea6.56n.a.n.a.n.a.
Eritrean.a.n.a.n.a.n.a.
Ethiopia4.067.89n.a.n.a.
Gabon3.13n.a.0.32n.a.
Gambia, The0.00n.a.n.a.n.a.
Ghana3.0315.50n.a.n.a.
Guinea0.00n.a.n.a.n.a.
Guinea-Bissau0.00n.a.n.a.n.a.
Kenya2.440.66n.a.0.04
Lesotho0.101.77n.a.n.a.
Liberia0.07n.a.n.a.n.a.
Madagascar4.018.73n.a.n.a.
Malawi0.586.83n.a.n.a.
Mali0.824.24n.a.n.a.
Mauritius0.00n.a.n.a.n.a.
Mozambique0.9016.890.440.07
Namibia0.451.82n.a.0.34
Niger1.240.88n.a.n.a.
Nigeria7.334.550.940.00
Rwanda0.001.50n.a.n.a.
Senegal0.0011.220.041.02
Seychelles0.00n.a.n.a.n.a.
Sierra Leone3.71n.a.n.a.n.a.
South Africa1.462.650.0011.79
Swaziland0.00n.a.n.a.n.a.
São Tomé and Príncipe1.70n.a.n.a.n.a.
Tanzania0.0010.231.240.17
Togo3.96n.a.n.a.n.a.
Uganda0.009.79n.a.n.a.
Zambia0.0022.07n.a.0.00
Zimbabwen.a.48.22n.a.9.96
World3.120.771.613.04
Sources: GIZ; IEA, World Energy Outlook 2012; IMF staff estimates; IMF, World Economic Outlook; OECD; World Bank.Note: Values are rounded to the nearest one-hundredth percent; electricity subsidies are taken from 2009 for 31 countries, and natural gas data are taken from 2010 for four countries. World estimates are calculated as identified subsidies divided by global government revenues. n.a. = not applicable; CEE-CIS = Central and Eastern Europe and Commonwealth of Independent States; LAC = Latin America and the Caribbean; MENA = Middle East and North Africa.

Owing to the lack of systematic cross-country data, the subsidy estimates do not take into account certain charges and taxes for energy that are often rationalized on environmental grounds. Principally, these include regional or country-level carbon pricing programs, road user charges (e.g., mileage-based tolls for trucks in Germany), and excise taxes on electricity consumption and vehicle sales. For example, the European Union Emissions Trading System imposes a carbon tax on certain greenhouse gases that are emitted by factories, power plants, and other installations in the system. The current prevailing prices, however, are only a small fraction of estimated damages, and only about half of emissions are covered under the scheme. To take another example, incorporating the road user charges for diesel vehicles in New Zealand would lower our posttax energy subsidy estimates for that country by US$0.8 billion.

The estimate for Luxembourg reflects, to a large extent, cross-border sales of petroleum products to neighboring countries, with buyers attracted by lower tax rates.

Sources: GIZ; IEA, World Energy Outlook 2012; IMF staff estimates; IMF, World Economic Outlook; OECD; World Bank.Note: Values are rounded to the nearest one-hundredth percent; electricity subsidies are taken from 2009 for 31 countries, and natural gas data are taken from 2010 for four countries. World estimates are calculated as identified subsidies divided by global government revenues. n.a. = not applicable; CEE-CIS = Central and Eastern Europe and Commonwealth of Independent States; LAC = Latin America and the Caribbean; MENA = Middle East and North Africa.

Owing to the lack of systematic cross-country data, the subsidy estimates do not take into account certain charges and taxes for energy that are often rationalized on environmental grounds. Principally, these include regional or country-level carbon pricing programs, road user charges (e.g., mileage-based tolls for trucks in Germany), and excise taxes on electricity consumption and vehicle sales. For example, the European Union Emissions Trading System imposes a carbon tax on certain greenhouse gases that are emitted by factories, power plants, and other installations in the system. The current prevailing prices, however, are only a small fraction of estimated damages, and only about half of emissions are covered under the scheme. To take another example, incorporating the road user charges for diesel vehicles in New Zealand would lower our posttax energy subsidy estimates for that country by US$0.8 billion.

The estimate for Luxembourg reflects, to a large extent, cross-border sales of petroleum products to neighboring countries, with buyers attracted by lower tax rates.

Subsidies for oil- based heating fuels and fuels for non- road transportation vehicles, which are substantial in some countries, are not included because of data limitations.

Although coal and natural gas are traded in international markets, transportation costs for these products are high, and a large share of both is consumed domestically or in the regions where they are produced.

For example, for nuclear power it is extremely difficult to quantify the risks from radioactive waste and meltdowns.

Principally, these include regional or country- level carbon pricing programs, road user charges (e.g., mileage- based tolls for trucks in Germany) and excise taxes on electricity consumption and vehicle sales. For example, the Eu ro pe an Union Emissions Trading System imposes a carbon tax on certain green house gases that are emitted by factories, power plants, and other installations in the system. The current prevailing prices, however, are only a small fraction of estimated damages, and only about half of emissions are covered under the scheme. To take another example, incorporating the road user charges for diesel vehicles in New Zealand would lower our post tax energy subsidy estimates for that country by US$0.8 billion.

More detailed work for other countries is under way in the Fiscal Affiairs Department to provide more precise estimates (IMF, forthcoming).

Posttax subsidies as a share of GDP for low- income countries would increase from 3.3 percent of GDP to 5.3 percent without this adjustment for noncarbon externalities of petroleum products and coal.

In principle, individual products should be taxed more heavily, or less heavily, than the average consumer good (on revenue- raising grounds), depending on whether taxing them causes a significant shift toward untaxed goods (e.g., leisure and products that are exempt from VAT). However, there is little empirical support on which to make these types of adjustments, so they are not pursued here.

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