It seems that the IEA expects not only lower expenditure on subsidies and thereof higher revenues on the taxation side, but also boosting economic development and growth.
Both developing and developed countries need to phase out inefficient fossil fuel subsidies. As they look for policy responses to the worst economic crisis of our lifetimes, phasing out subsidies is an obvious way to help governments meet their economic, environmental and social goals.
said OECD Secretary-General Angel Gurria (in IEA press release)
What is struck me, is that the fossil-fuel subsidies, according to IEA and OECD, were 20% 30% higher in 2010 (USD 409 billion) than in 2009 (USD 300 billion). Even with all the anti-fossil fuel movements, An Inconvenient Truth, and high profile alternative energy evangelists!
Lets wait for November 9th for detailed report.
Photo by thematchfactory.com.