The Fossil Fuel Subsidy Red Herring
Subsidies to Fossil Energy Aren't the Low-Hanging Fruit We Might Wish They Were
Every few months — or constantly, depending on your attention span — we hear another round of passionate recommendations that fossil fuel subsidies be phased out to level the playing field for clean energy. Most recently, World Bank president Jim Yong Kim emphasized that “we need to get rid of fossil fuel subsidies now” in his agenda for promoting clean energy.
Sounds like a sensible goal, but there’s reason to think that eliminating fossil fuel subsidies wouldn’t be nearly as transformative as is often suggested. In this post, I’ll briefly explain why that’s the case.