Fossil fuel subsidies in Latin America and the Caribbean - José Eduardo Alatorre Economics of Climate Change Unit Sustainable Development and ...
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Fossil fuel subsidies in Latin America and the Caribbean September 2021 José Eduardo Alatorre Economics of Climate Change Unit Sustainable Development and Human Settlements Division Economic Commission for Latin America and the Caribbean
Context: The dimensions of sustainable development
Economic
Economic structure Economic
Indebtedness Environmental
External constraint Local and global pollution
Energy matrix
Sustainable
development
Social Environmental
Social
Health; public
expenditure
Climate change: We are not on the right track
56% of emissions in LAC are emissions from energy use. 75% in the
Caribbean
LAC, Final energy consumption by sector, 2018
(Percentage)
Source: Own elaboration with data from IEA.
Car ownership is growing faster than the population and the economy
Population, GDP and number of vehicles: Average
annual growth: 2005 - 2015
(%)
8
7
6
5
4
3
2
1
0
Población PIB Número de vehículos
Source: Comisión Económica para América Latina y el Caribe (CEPAL), sobre la base de información de Organización Internacional de Constructores de Automóviles (OICA) y Banco Mundial,
World Development Indicators.
Consumption has a detrimental effect on human health
and welfare
Source: A. Bárcena y otros, La emergencia del cambio climático en América Latina y el Caribe: ¿seguimos
esperando la catástrofe o pasamos a la acción?, Libros de la CEPAL, N°160 (LC/PUB.2019/23-P), Santiago,
Comisión Económica para América Latina y el Caribe (CEPAL), 2020.
On average, LAC tax revenue is lower, and our social policy is less
effective in reducing inequality.
Tax revenue (% of GDP), 2018.
(Total tax revenues as a percentage of GDP)
Cuba 42.3
Promedio OCDE¹ 34.3 Gini coefficient pre and post taxes and transfers, 2017 or latest
Barbados 33.1
Brasil 33.1 available year.
Belice 29.7
Uruguay 29.2
Argentina 28.8
Jamaica 27.8
Guyana 27.4
Bolivia 25.4
Trinidad y Tobago 24.2
Costa Rica 24.0
Promedio ALC² 23.1
Nicaragua 23.0
Honduras 22.3
El Salvador 21.1
Chile 21.1
Ecuador 20.6
Santa Lucía 20.0
Colombia 19.4
Bahamas 17.6
Perú 16.4
México 16.1
Panamá 14.6
Paraguay 14.0
República Dominicana 13.2 OCDE et al. (2020), Estadísticas tributarias en América Latina y el Caribe 2020, OECD Publishing, Paris,
Guatemala 12.1 https://doi.org/10.1787/68739b9b-en-es.
0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.0Subsidies benefit high income households...
Argentina, Chile, Guatemala and Mexico: structure of direct consumption of fossil
fuels for transport (petrol, diesel and biodiesel), 2012–2016
(Percentages)
70.0 65
60.0
50.0
40.0
32
30.0 26 28
19 19
20.0 16 18 14 16 14
9 11 11
8 10
10.0 4 6
7 5 6 8 8 6
1 3 1 3
4
1 2 3 5 1 2
3 5
0 0 1
0.0
VII
VIII
VII
VIII
VII
VIII
VII
VIII
III
V
I
X
III
V
I
X
III
V
I
X
III
V
I
X
VI
VI
VI
VI
IV
II
IX
IV
II
IX
IV
II
IX
II
IV
IX
Argentina (ENGHO 2012 - 2013) Chile (EPF 2016) Guatemala (Encovi, 2014) Mexico (ENIGH 2016)
Source: A. Bárcena y otros, La emergencia del cambio climático en América Latina y el Caribe: ¿seguimos esperando la catástrofe o pasamos a la
acción?, Libros de la CEPAL, N°160 (LC/PUB.2019/23-P), Santiago, Comisión Económica para América Latina y el Caribe (CEPAL), 2020....and are expensive
LAC: Fossil fuel consumption subsidies, 2020 LAC: Fossil fuel consumption subsidies, 2010-2020
(% of GDP) (% of GDP)
Fuente: IEA Energy subsidies – Topics - IEADelays the adoption of renewables Fuente: IRENA (2020), Renewable Power Generation Costs in 2019, International Renewable Energy Agency, Abu Dhabi.; y Global Renewables Outlook
Concluding remarks • There are environmental, social and economic reasons for reforming fossil fuel subsidy schemes. • Subsidy schemes need to be reevaluated. • Knowing the magnitude and destination of the subsidies allows us to assess their efficiency.
Fossil fuel subsidies in Latin America and the Caribbean September 2021 José Eduardo Alatorre Economics of Climate Change Unit Sustainable Development and Human Settlements Division Economic Commission for Latin America and the Caribbean
You can also read
