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Journal article

Why fossil fuel producer subsidies matter

This article in Nature explains how subsidies affect fossil fuel investment and why they deserve greater attention in global modelling analyses.

Peter Erickson, Harro van Asselt, Michael Lazarus / Published on 5 February 2020

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Citation

Erickson, P, van Asselt, H., Koplow, D., Lazarus, M., Newell, P., Oreskes, N. and Supran, G. (2020). Why fossil fuel producer subsidies matter. Nature. online 5 February 2020. DOI: 10.1038/s41586-019-1920-x

This article responds to a 2018 study in Nature that used the results of integrated assessment models to infer that eliminating subsidies would yield “limited emission reductions…except in energy-exporting regions”, and described the emission reduction benefits as “small”.

This characterization is potentially misleading, and this article uses a simple, sector-specific model to show how the emission reductions from producer subsidy reform could be more material than the 2018 study suggests. Fossil fuel producer subsidies delay a low-carbon transition in ways both material and political, and they deserve greater attention and transparency in global modelling analyses, as well as in policy-making.

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SEI authors

Peter Erickson

SEI Affiliated Researcher

SEI US

Profile picture of Harro van Asselt
Harro van Asselt

SEI Affiliated Researcher

SEI US

Michael Lazarus
Michael Lazarus

Senior Scientist

SEI US

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Topics and subtopics
Climate : Climate policy, Fossil fuels / Energy : Fossil fuels
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