Energy subsidies are measures that keep prices for consumers below market levels or for producers above market levels, or reduce costs for consumers and producers. Energy subsidies may be direct cash transfers to producers, consumers, or related bodies, as well as indirect support mechanisms, such as tax exemptions and rebates, price controls, trade restrictions, and limits on market access. They may also include energy conservation subsidies.
The global fossil fuel subsidies were $523 billion and renewable energy subsidies $88 billion in 2011. According to Fatih Birol, Chief Economist at the International Energy Agency without a phasing out of fossil fuel subsidies, we will not reach our climate targets.
Read more about Energy Subsidies: Overview, Allocation of Subsidies, Externalities, IEA Position On Subsidies
Famous quotes containing the word energy:
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—George F. Will (b. 1941)