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IMF Estimates Trillions in Hidden Fossil-Fuel Costs

Use of coal in China and India surpasses savings as governments slash traditional energy subsidies

WASHINGTON—Consumers should be paying a whopping $5 trillion more a year for energy to cover the hidden health and environmental costs of using fossil fuels, the International Monetary Fund said Monday.

Vitor Gaspar, head of the IMF’s fiscal affairs department, which produced the report, called the estimates shocking and “one of the largest negative externalities ever estimated,” referring to costs that aren’t factored into...

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