Thursday, December 2, 2010

Attention "free market" people - fossil fuel subsidy USD 500 B/yr

Irena chief wants to map energy: "Another priority was to raise awareness about subsidies received by the fossil fuel sector, he said. Globally these 'massive' subsidies amounted to an estimated US$500 billion (Dh1.8 trillion) annually, he said, and remained one of the main factors blocking countries from adopting renewable energy options. When governments help oil companies defray the cost of exploration and production, prices of their end product are kept so artificially low that renewable forms of energy cannot compete."

2 comments:

ctermaat said...

Does this figure factor in the cost of wars in the middle east?

fpteditors said...

Most likely, it does not. This is IRENA's number. It probably refers to direct subsidy. The indirect subsidy is many times that. We are compiling a list (the US only) here: Externalities