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Energy Subsidies

In: The Palgrave Handbook of International Energy Economics

Author

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  • Tom Moerenhout

    (Columbia University, School of International and Public Affairs, Center on Global Energy Policy)

Abstract

Energy subsidies are widespread among OECD and non-OECD countries and exist for all energy types. Governments often give noble and legitimate rationales for the introduction and continuation of various energy subsidies, but the reality of energy subsidy policies is nearly always more complex than the stated rationale. Governments have tried to balance the energy trilemma by implementing several types of energy subsidies at once. This has resulted in a complex political economy of pervasive subsidies across energy production and consumption. Even when some policy priorities clearly change, the phasing out of existing subsidies may prove politically challenging when powerful vested interest groups exercise their influence over governmental decision-making. This chapter goes in depth on the types, size, objectives, and politics of subsidies to fossil fuel consumption and production and those to renewable electricity.

Suggested Citation

  • Tom Moerenhout, 2022. "Energy Subsidies," Springer Books, in: Manfred Hafner & Giacomo Luciani (ed.), The Palgrave Handbook of International Energy Economics, chapter 0, pages 545-565, Springer.
    • Handle: RePEc:spr:sprchp:978-3-030-86884-0_27
    DOI: 10.1007/978-3-030-86884-0_27
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