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Lessons Drawn from Reforms of Energy Subsidies
Report

Lessons Drawn from Reforms of Energy Subsidies


автоматическое преобразование текста в аудио
автоматическое преобразование текста в аудио

Editorial Rating

8

Qualities

  • Innovative

Recommendation

“Once in place, energy subsidies are extremely difficult to remove.” So states the committee, established by the World Economic Forum and led by energy industry executive Mohammed I. Al Hammadi, tasked with finding the best subsidy reform practices among nations. getAbstract recommends its report, brimming with practical case studies, to regulators, politicians and energy executives interested in the consequences of energy reform.

Take-Aways

  • Energy subsidies are designed to insulate energy producers and consumers from fluctuating fuel prices.
  • However, energy subsidies can lead to serious negative externalities: On the demand side, subsidies disincentivize efficient energy use.
  • On the supply side, subsidies distort market prices, fund projects that may not otherwise be viable, deter investment in green energy and discourage energy firms from becoming more productive.

About the Author

Mohammed I. Al Hammadi is CEO of Emirates Nuclear Energy Cooperation.


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