The $5.3tn "true cost" of government energy subsidies that the IMF team arrived at is equivalent to 6.5 per cent of global economic output. It is also more than twice the $1.9tn cost calculated by IMF researchers just two years ago. At the time the fund itself called that estimate "staggering".
Almost the entire difference between the old and the new estimate is based on a radical re-accounting of what the study says are the real environmental costs of energy subsidies. It also amounts to a significant shake-up of the argument the IMF and others have made against the energy subsidies that have eaten up huge portions of government budgets in emerging economies such as India and Indonesia.