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Fossil fuel subsidies: three questions, evidence and way forward

The G-20 has committed itself to rationalize and eliminate inefficient fossil-fuel subsidies, with targeted subsidies for the poorest. The analytical basis, and measures, could be improved. This Note, in that context, asks three questions---rationale for the proposal, measuring the „subsidy‟, and addressing energy poverty---and some evidence. It concludes with a „Way Forward‟ that is likely to be more conceptually demanding, but more effective, equitable and efficient for globally cooperative outcomes.