Global Fossil Fuel Consumption Subsidies Abound, But Not in the United States

The International Energy Agency (IEA) annually estimates global fossil-fuel consumption subsidies that measure what many developing countries spend to provide below-market cost fuel to their citizens. In 2016, IEA found that fossil fuel consumption subsidies totaled around $260 billion, 16 percent lower (about $50 billion less) than in 2015. According to IEA, this decrease is partly due to lower international energy prices of subsidized fuels. Oil subsidies made up 40 percent of the total fossil fuel consumption subsidies, while electricity made up 41 percent, natural gas 19 percent and coal 0.8 percent. According to the IEA, the United States does not have any consumption subsidies for oil, coal, electricity or natural gas.