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Using importers’ windfall savings from oil subsidy reform to enhance international cooperation on climate policies

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  • Michael Jakob
  • Jérôme Hilaire

Abstract

Fossil fuel subsidy reform would not only decrease consumption, but also lower the world market price of traded fossil energy carriers, in particular oil. As a consequence, oil importers would lower their import bills by more than US$ 30 bn per year. Recycling at least a part of these savings to support low-carbon energy technologies in countries that reduce their subsidies could provide a mechanism to jointly incentivize transformation of the energy system and alter the political economy of subsidy reform. Copyright Springer Science+Business Media Dordrecht 2015

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  • Michael Jakob & Jérôme Hilaire, 2015. "Using importers’ windfall savings from oil subsidy reform to enhance international cooperation on climate policies," Climatic Change, Springer, vol. 131(4), pages 465-472, August.
    • Handle: RePEc:spr:climat:v:131:y:2015:i:4:p:465-472
    DOI: 10.1007/s10584-015-1406-2
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