Getting rid of fossil-fuel subsidies is a triple-win solution

Journal article

Fossil-fuel subsidies remain commonplace in many countries. They result in an economically inefficient allocation of resources and market distortions, while often failing to meet their intended objectives. Moreover, volatile energy markets and the prospect of higher fossil fuel prices mean that fossil-fuel subsidies threaten to be a growing liability to state budgets. This prospect has created a strong impetus for reform, strengthened by other associated benefits. But fossil-fuel subsidy reform is notoriously difficult as the short-term costs imposed on certain groups of society can be very burdensome and induce fierce opposition. If removing these subsidies were easy, it would probably already have happened.

Authors: Birol, F

• Publication status: Published
• Peer review status: Peer reviewed
• Publisher: Oxford Institute for Energy Studies
• Journal: Oxford Energy Forum
• Volume: 88
• Pages: 8-10
• Publication date: 2012-05-01
• Edition: Publisher's version
• ISSN: 0959-7727
• Language: English
• Keywords: OIES