Low oil prices are the talk of the day in environmental and energy circles. Some environmentalists probably despair over rising gasoline consumption and SUV sales in America, while others note that low prices reduce the profitability of extracting oil and gas from unconventional sources, such as as tar sands. Yet others discuss the possibly negative effects of low oil prices on clean energy.
For policymakers in emerging economies, low oil prices present an important opportunity to remove environmentally destructive and economically costly fuel subsidies. Just a week ago, The Economist advised pollicymakers to “seize the day” and use the opportunity afforded by low oil prices to rationalize the pricing of gasoline, diesel, and other fossil fuels.
It’s easy to see why this is important. According to the International Energy Agency, annual subsidies to fossil fuels now total a whopping USD 550 billion per year.
These subsidies lower the price of fossil fuels and encourage over-consumption.For policymakers in emerging economies, low oil prices present an important opportunity to remove environmentally destructive and economically costly fuel subsidies. Just a week ago, The Economist advised pollicymakers to “seize the day” and use the opportunity afforded by low oil prices to rationalize the pricing of gasoline, diesel, and other fossil fuels.
It’s easy to see why this is important. According to the International Energy Agency, annual subsidies to fossil fuels now total a whopping USD 550 billion per year.
Read the full article here: http://theenergycollective.com/jurpelai/2187291/low-oil-prices-and-fuel-subsidies-doing-away-really-bad-energy-policy?utm_source=feedburner&utm_medium=twitter&utm_campaign=Feed%3A%20TheEnergyCollective-TwitterHandleFeed%20%28The%20Energy%20Collective%20-%20Twitter%20Handle%20Feed%29
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