Mispricing from a domestic perspective is responsible
for a large majority of the global
subsidy: in 2013, local
air pollution totaled 46 % of the
subsidy, under - taxation of broader vehicle externalities (e.g., congestion, accidents) accounted
for 13 %, 11 % of the
subsidy came from undercharging
for inventory costs, and general consumer taxes amounted to 8 %.
As stated before I would like to see
subsidies for fossil fuel removed and also external costs such as healthcare due to
air pollution factored in as that would give a true cost of power generation.