Beware kerosene subsidies: An obstacle to energy efficiency and development

The International Monetary Fund estimates that global energy subsidies topped $5 trillion in 2015, or a whopping 6.5% of GDP. This represents an immense amount of money trimmed off the true price of energy and financed, instead, in a cloaked way through other parts of the economy. We all still pay for this energy, but through general taxes that governments must collect in order to finance their support to energy providers, and through externalities such as health costs and roadway congestion caused by energy use.