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Energy Subsidies - Lessons Learned in Assessing their Impact and Designing Policy Reforms (Hardcover)
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Energy Subsidies - Lessons Learned in Assessing their Impact and Designing Policy Reforms (Hardcover)
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The need to reform energy subsidies was one of the pressing issues
highlighted at the World Summit on Sustainable Development. Many
types of subsidy, especially those that encourage the production
and use of fossil fuel, and other non-renewable forms of energy,
are harmful to the environment. They can also have high financial
and economic costs, and often only bring few benefits to the people
for whom they are intended.Removing, reducing or restructuring such
energy subsidies is helpful for the environment and the economy at
the same time. Potential social costs in terms of employment in the
conventional energy industry or reduced access to energy could be
addressed by redirecting the money formerly spent on subsidies to
income support, health, environment, education or regional
development programmes.Of course, subsidies can have certain
positive consequences, particularly where they are aimed at
encouraging more sustainable energy production and use. Temporary
support for renewable energy and energy-efficient technologies to
overcome market barriers, and measures to improve poor or rural
households' access to modern, commercial forms of energy, for
instance, could be positive measures in support of sustainable
development.Based on ground-breaking work undertaken by UNEP and
the International Energy Agency, this book aims to raise awareness
of the actual and potential impacts of energy subsidies and provide
guidance to policy-makers on how to design and implement
energy-subsidy reforms. It provides methodologies for analysing the
impact of subsidies and their reform, and reviews experiences with
energy subsidies in a number of countries and regions. Drawing on
these case studies, it analyses the lessons learned as well as the
policy implications, and provides guidance on how to overcome
resistance to reform.The book provides an analytical framework
which aims to set the scene for the detailed discussion of
energy-subsidy issues at the country level. It considers how
subsidies are defined, how they can be measured, how big they are
and how their effects can be assessed. A more detailed discussion
of methodological approaches to the assessment of the economic,
environmental and social effects of subsidies and their reform is
contained in the Annex.Chapters 3-11 of the book contain country
case studies from contributing authors, which review various
experiences and issues related to energy subsidies in selected
countries, but do not strive for a common approach. They are
organised along geographical lines, beginning with a review of
energy subsidies generally in OECD countries. Case studies of
energy subsidies in transition economies - the Czech and Slovak
Republics (Chapter 4) and Russia (Chapter 5) - follow. Three
studies of Asian countries focus on the costs of different types of
energy subsidy: electricity subsidies in India (Chapter 6), oil
subsidies in Indonesia (Chapter 7) and energy subsidies generally
in Korea (Chapter 8). Chapter 9 reviews the effect of energy
subsidies in Iran and suggests a pragmatic approach to reforming
them. This is followed by an assessment of the LPG subsidy
programme in Senegal (Chapter 10) and an analysis of the effects of
removing coal and oil subsides in Chile (Chapter 11).Chapter 12
analyses the lessons learned from these case studies, focusing on
the economic, environmental and social effects and their
implications for policy. Finally, Chapter 13 discusses the
implications of these findings and makes practical recommendations
for designing and implementing policy reforms.This book will be
essential for both practitioners and academics involved in the
energy sector and for governments and policy-makers wishing to
examine the reform of energy subsidies.
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