Should Energy be Subsidized?
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Case Details: |
Price: |
| Case Code |
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ECON021 |
For delivery in electronic format: Rs. 300;
For delivery through courier (within India): Rs. 300 + Shipping & Handling Charges extra
ThemesEconomics |
| Case Length |
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14 Pages |
| Period |
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1990-2007 |
| Pub Date |
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2007 |
| Teaching Note |
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Not Available |
| Organization |
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- |
| Industry |
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Energy |
| Countries
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Worldwide |
Abstract:
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The increase in international energy prices and the environmental damage caused
by excessive energy use have brought the issue of energy subsidies into focus in
recent years. While some economists and policy makers were in favor of subsidies
to the energy sector, others were against them, considering the burden that they
imposed on government finances and the environmental impact of indiscriminate
energy use.
The case discusses some of the different aspects of energy subsidies and the
impact, both positive and negative, of withdrawing energy subsidies. The case
ends with a discussion on recent studies on energy subsidies.
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Issues:
» To learn about energy subsidies and the forms that they assume
» To understand the impact of energy subsidies on the economy and on the
environment
» To analyze the rationale behind extending subsidies to the renewable energy
sector
» To analyze the impact of withdrawing subsidies to the non-renewable energy
sector
Contents:
Keywords:
Energy subsidies, Subsidized fuel, Effect of subsidies on
economy, Renewable energy, Environmental impact of subsidies, Inflation,
Over-consumption of energy, Eliminating subsidies
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