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This chapter describes a methodology for measuring fossil fuel subsidies at the global and country level and quantifies the impacts of reform. Subsidies are defined broadly to include undercharging for supply costs (explicit subsidies) plus general consumer taxes and environmental costs (implicit subsidies). The approach involves an extensive compilation of country-level data on sectoral fuel consumption; fuel prices; supply costs; climate, local air pollution, and broader externalities associated with fuel use; and general consumer taxes. A spreadsheet tool for estimating the environmental, fiscal, and economic impacts of fuel-price reform is also briefly discussed. 1