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Articles on Subsidies

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Sandstorm approaching Merzouga Settlement in Erg Chebbi Desert, Morocco. Pavliha/Getty Images

Six areas where action must focus to rescue this planet

Humanity’s biggest challenges are not technical, but social, economic, political and behavioural. Effective actions are still possible to stabilise the climate and the planet, but must be taken now.
Aerial view of the 6-megawatt Stanton Solar Farm near Orlando, Fla. Paul Hennessy/SOPA Images/LightRocket via Getty Images

Who pays and who benefits from a massive expansion of solar power?

President Biden’s proposed solar power expansion would cost $350 billion in federal support over the coming decade. An energy expert explains where that money would come from and who it would help.
A Renault Zoe charging. It’s currently one of the top-selling plug-in electric vehicles in Europe, but what would happen if subsidies dried up? Werner Hillebrand-Hansen/Wikipedia

Electric vehicles as an example of a market failure

Electric vehicles are taking off, but will demand remain sustainable once governments phase out subsidies? And as the “hidden costs” of the EV revolution emerge, some might get left behind…
Increasing prices to levels that reflect the costs of production sends a signal that electricity is a valuable commodity. www.shutterstock.com

Indonesia’s electricity subsidy reforms led to improved efficiency

Indonesia will freeze electricity prices until the end of 2019, a presidential election year. Research shows that earlier cuts to electricity subsidies led to improved efficiency in electricity use.

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