Fossil Fuel Subsidies in Asia: Trends, Impacts, and Reforms: Integrative Report
Asian Development Bank | June 2016
Abstract
Unsustainable budgetary cost of selling oil, gas, and coal at low prices has propelled energy subsidy reform in developing Asian economies. This report measures the size of associated subsidies on these fossil fuels including direct transfers, tax exemptions, subsidized credit, and losses of state enterprises in India, Indonesia, and Thailand. An analysis of complex interactions between economic, social, energy, and environmental issues shows that the initial rise in energy prices due to a reduction or removal of the subsidies will nudge households and businesses to shift to alternative fuels, make investment in clean energy attractive, increase energy supply, reduce energy shortages, and cut greenhouse gas emissions. Using the money freed up from subsidies to compensate poor households and to increase government budgets will offset the negative effects of the initial price rise, promote sustainable energy use, and help allay the fears of reform.
Citation
Asian Development Bank. 2016. Fossil Fuel Subsidies in Asia: Trends, Impacts, and Reforms: Integrative Report. © Asian Development Bank. http://hdl.handle.net/11540/9007. License: CC BY 3.0 IGO.PDF ISBN
978-92-9257-299-0
Print ISBN
978-92-9257-298-3
Keywords
Development In East Asia
Development Planning
Development Research
Development Financing
Development Policies
Infrastructure Development
Project Development
Systems Design & Development
Alternative energy development
Energy Economics
Renewable Energy
ADB
Development assistance
Infrastructure projects
Sustainable growth
Energy
Infrastructure projects
Sustainable growth
Energy
Development policy
Development strategy
Infrastructure projects
Alternative energy program
Alternative energy technology
Energy Subsidies
Solar energy policy
Development banks
Infrastructure
Joint venture
Energy policy
Renewable energy source
Solar energy
Energy development
Technology
Sun
Energy resource
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