Are Government Oil Subsidies Negatively Affecting the World Economy and the Sustainable Energy Industry?

,

There is simply no denying the amount of progress that has been made in terms of the continuing commitment to the sustainable and renewable energy industries, but it is equally undeniable that there are still many obstacles preventing the amount of alternative energy industry growth needed to truly prevent the many difficulties caused by global climate change. An expert like Andrew Charlton would likely be among the first to note that a greater economic incentive is necessary to encourage the shift away from the reliance on oil as the primary source of energy.

One way to remove the incentive on the continued use of oil as an energy resource is to eliminate the current practice regarding government subsidies. As it stands now, there are government subsidies granted to the oil industry in excess of $500 billion, which essentially depresses the market for alternative sources of energy. It’s believed simply removing those subsidies from the oil industry and shifting them to the development of clean energy systems would generate a number of tremendously beneficial outcomes.

Instead of creating a disincentive through the use of subsidies, governments could use these subsidies to encourage the rapid uptake of clean energy systems without having to do anything that would alter the existing levels of government spending. The current practice with regard to these subsidies seems to clearly encourage the kind of oil use that is having such a devastating impact on the global climate that the need for rapid action is becoming increasingly clear. Eliminating oil subsidies in order to invest in clean energy seems to better reflect the goals outlined by climate change experts as well as economic experts all over the world.

Leave a Reply

Your email address will not be published. Required fields are marked *