However, there is a large body of evidence showing that fossil fuel subsidies are regressive. For instance, one study found that in 20 developing countries, the 20% richest households capture 43% of such subsidies (del Granado et al., Estimates by the International Energy Agency (IEA, 2011) reveal that only 8% of global fossil fuel reaches the lowest income quintile.19 Substantially reducing electricity and fossil-fuel subsidies and compensating directly the poor would result in a better resource allocation and simultaneously achieve a more equitable distribution of income.