Reforming fossil fuel subsidies: drivers, barriers and the state of progress (Rentschler & Bazilian)
This article by Rentschler & Bazilian (2017) outlines the current state of affairs in fossil fuel subsidy reform, and highlights its contribution at the nexus of climate policy, fiscal stability and sustainable development. It discusses common definitions, provides quantitative estimates, and presents the evidence for key arguments in favour of subsidy reform. The main drivers and barriers for reform are also discussed, including the role of (low) oil prices and political economy challenges. Finally, the paper synthesizes the key principles for designing effective reforms and emphasizes that subsidy reforms not only yield fiscal relief, but should also contribute to long-term sustainable development objectives. The report is available to download on the Taylor & Francis Online website.