IMF report: 'Start taxing, stop subsidizing carbon'
What’s the simplest way to tackle global warming? Make sure that fossil fuels are priced properly and not subsidized.
That’s the core idea behind a large new report (pdf) from the International Monetary Fund, which argues that the world “misprices” fossil fuels to the tune of some $1.9 trillion per year.
Eliminating these subsidies, the IMF argues, and replacing them with appropriate carbon taxes could cut global greenhouse-gas emissions by 13 percent, curtail air pollution, and shore up the finances of many poorer countries now in debt trouble.