OECD Companion to the Inventory of Support Measures for Fossil Fuels 2015

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This publication is concerned with all policies that directly support the production or consumption of fossil fuels in OECD countries and in a selection of partner economies. It provides a useful complement to the online OECD database that identifies and estimates direct budgetary transfers and tax expenditures benefitting fossil fuels, and from which it derives summary results and indicators on support to fossil fuels, as well as policy recommendations.

This report emphasises the problems that fossil-fuel subsidies cause in the context of broader policy efforts for mitigating greenhouse-gas emissions, and reviews the various reform initiatives that have already been taken at the international level (G-20, APEC, etc.). In addition, it presents the coverage, method and data sources used for constructing the online database, and further discusses caveats and data interpretation.

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The Inventory approach to estimating support for fossil fuels

This second chapter introduces readers to the new Inventory of support measures for fossil fuels that the OECD has made available on its website in the form of an online database. Section 2.1 briefly sketches the structure of the database and its coverage, including what the OECD considers to be “support”. Section 2.2 explains how the OECD collected the primary data that were then processed and transformed before they were eventually assembled in the database. In particular, the section describes the conceptual framework that the OECD uses to organise the information collected. Last, section 2.3 delves into the caveats that apply to tax-expenditure estimates since these account for more than half of all the measures the database contains.

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