Energy Subsidies in Other Countries

The report identifies, quantifies and evaluates measures of government support to two upstream oil and gas developments in the Russian Arctic: Yamal LNG (gas) and Prirazlomnoe (oil). Using Sigra Group’s RusTax-model and information collected from publicly available sources, the analysis demonstrates how the measures of government support to the two projects have altered their economics.

This paper explores the concept of financial sustainability and proposes a framework to analyze electricity sectors based on this model.

This study provides a detailed exploration of the events leading up to, during and after the notorious Spanish solar PV bubble—when a sudden and unexpected burst of investment in solar PV led to skyrocketing policy costs, and ultimately resulted in the government taking retroactive measures to reduce the subsidy promised to developers.

The Philippines has removed the majority of all consumer energy subsidies, successfully phasing out most price subsidies in the downstream oil and electricity sectors in the late 1990s and resisting intermittent demands for their reintroduction. This detailed case study looks into some of the factors that enabled such durable reforms. This includes slowly transitioning towards higher prices and the use of somewhat targeted subsidies and transfers to provide support for the country's most vulnerable consumers. The Philippines' government has also engaged in proactive efforts to articulate the rationale for price changes, monitor the deregulated market and repeatedly investigate the costs and benefits of reform through a series of high-level independent panels.

Green industrial policy (GIP) is the pursuit by governments of national economic excellence in key green economy sectors, with a view to creating globally competitive domestic firms. This report is one in a series that considers the lessons for GIP that can be learnt from policies in the renewable energy sector. The aim of the series is to provide policy makers with research to support the development of cost effective, well targeted policies for the development of green industries. The reports highlight how policies have worked, the outcomes of the policies and the lessons that have been learnt.

In September 2013 Sudan introduced the third and most dramatic in a series of fuel subsidy cuts, raising prices of petrol, diesel and liquefied petroleum gas (LPG) by 65 to 75 per cent each. This came in a context of high economic pressure, following the loss of oil revenue from South Sudan after July 2011. That resulted in significant structural imbalances in the fiscal and current accounts, sending the black market exchange rate out of control and requiring the Central Bank to print money to finance excessive government spending.

Does government support to upstream oil and gas projects benefit local communities in the Arctic? That was the topic of a panel organized by the International Institute for Sustainable Development at the Arctic Energy Summit in Akureyri, Iceland, on October 9th. The panel discussion was led by six speakers: Stewart Wheeler, Canada’s Ambassador to Iceland; Mary Simon, Inuit Tapiriit Kanatami, Canada; Mikael Anzén, Ministry of Foreign Affairs, Sweden & Head of Delegation, Sustainable Development Working Group of the Arctic Council (Mr. Anzén spoke in his personal capacity); Pauline Gerrard, Hudson Bay Inland Sea Initiative, IISD, Canada; Mikhail Babenko, WWF Global Arctic Programme, Russia; and Hjalti Jóhannesson, University of Akureyri Research Centre, Iceland.

Will President Barack Obama’s Climate Action Plan put the United States on a pathway to sustainable development? And will this re-legitimize the United States as a global leader against climate change?