betacity


June 14, 2014, 12:43 pm
Filed under: Energy | Tags: , ,

Cutting energy subsidies is difficult. Their drawbacks are huge: they distort the economy, fuel corruption, bust budgets and, perversely, benefit the rich, as big users of energy, far more than the poor. They suck money from health care and education. Yet ending them can turn poverty to destitution. Nevertheless, a surprising number of countries have made inroads http://econ.st/1isMCeKThere are 7 billion people in the world. Subsidies per year in 2012 were about $550 billion. That’s nearly $80 per person in subsidies, but the allotment is massively skewed to the rich. From the Economist:

Cutting energy subsidies is difficult. Their drawbacks are huge: they distort the economy, fuel corruption, bust budgets and, perversely, benefit the rich, as big users of energy, far more than the poor. They suck money from health care and education. Yet ending them can turn poverty to destitution. Nevertheless, a surprising number of countries have made inroads http://econ.st/1isMCeK

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