Skip to content

The darkside of energy subsidies -- a planet held hostage by its appetite for fossil fuels

By Catholic Online (NEWS CONSORTIUM)
5/1/2014 (3 years ago)
Catholic Online (www.catholic.org)

Energy subsidies are unnecessary, expensive, and the world is addicted to them.

New reports show that fossil fuels are the most subsidized industries around the world. A report by the BBC blasts this reality, explaining that the industries are hardly "in need of a helping hand."

Energy subsidies send trillions per year up in smoke.

Energy subsidies send trillions per year up in smoke.

Highlights

By Catholic Online (NEWS CONSORTIUM)
Catholic Online (www.catholic.org)
5/1/2014 (3 years ago)

Published in Green

Keywords: Energy, subsidies, addiction, costs, infrastructure


LOS ANGELES, CA (Catholic Online) - Reports from the International Energy Agency (IEA) reports that over half-a-trillion dollars were spent on fossil fuel subsidies in 2012. The International Monetary Fund (IMF), which looks at government subsidies for producers (instead of consumers) says that they received nearly $2 trillion in subsidies.

Meanwhile, the fossil fuel industry remains one of the most profitable industries on the planet generating legendary amounts of wealth.

Join us in the national day of prayer.

The BBC reports that fossil fuels are about 80 percent of our consumption, but that they contribute to greenhouse gas emissions and other harms.

The subsidies, according to the BBC, come in various forms. For example, some subsidies keep the costs of fuel down which encourages consumption. Other subsidies are paid to producers, making it profitable for them to pursue supplies of fossil fuels that would otherwise be unprofitable.

The problem with subsidies is threefold. First, the wealthy benefit the most from subsidies while the poor, who usually lack access to electricity and automobiles, benefit the least. Second, subsidies burn enormous amounts of government wealth on artificially manipulating prices and competition. Although the short-term gains are great, the long-term consequences could prove more severe. Finally, by encouraging consumption of fossil fuels the entire scheme contributes to carbon emissions and global warming.

The problem for governments is that subsidies are very popular with the people, despite their enormous costs. In half of all nations, the energy sector is controlled by the government. All fuel prices are manipulated by governments in a variety of ways including taxes on fuel. Large segments of the population are employed in the energy industries and most people are very sensitive to price shocks.

Any disruption to the status quo is typically met with public protests and can be politically expensive for elected officials. This makes it especially difficult for governments to impose new taxes on energy or to reduce subsidies.

Finally, many nations which manage their own energy production lack the ability to update their infrastructure, which means diminishing returns over time.

The subsidies paid to energy companies usually means there is less money for healthcare, education, and other infrastructure projects.

The BBC admits that while fossil fuel subsidies may go away, they will "be with us for a very long time" and getting rid of them will require massive global political effort.

---


'Help give every student and teacher Free resources for a world-class moral Catholic education'


Copyright 2017 - Distributed by THE CALIFORNIA NETWORK

Pope Francis Prayer Intentions for OCTOBER 2017
Workers and the Unemployed.
That all workers may receive respect and protection of their rights, and that the unemployed may receive the opportunity to contribute to the common good.


Comments


More Green

Has Pope Francis violated the 8th Commandment, speaking out against climate skeptics? Watch

Image of Pope Francis has made clear that care for creation is a major concern of the Church and humanity.

Pope Francis has issued a stinging rebuke against those who deny that human-caused global warming is real. He called the notion a "perverse ... continue reading


Warning from scientists, the end of the world is near Watch

Image of According to Malthus, overpopulation leads to widespread poverty and misery. Other economists disagree and say more people means more people making more stuff, which increases the collective standard of living. Both appear to be right, but with Malthus likely to have the last word.

More than 1,500 scientists have issued a warning to humanity, stating that our activities, and life as we know it are on a collision ... continue reading


Scientists discover the Egyptians also recorded the day the sun stood still, and now we know when it happened Watch

Image of The sun may not have literally stood still. Instead, the original Hebrew suggests and eclipse rather than a suspension of the laws of physics.

Scientists have discovered the exact date when the sun stood still in the book of Joshua. The discovery was made using an Egyptian source ... continue reading


Another year without summer ahead? TWO volcanoes threaten catastrophic eruptions Watch

Image of Over 120,000 people have been evacuated on the island of Bali, away from the slopes of Mt. Agung, which is about to erupt.

Two volcanoes are about to erupt almost simultaneously, spewing massive quantities of ash and soot into the air. Scientists have warned ... continue reading


7.1 quake rattles Mexico City, scores dead Watch

Image of The powerful quake was felt as far away as Guadalajara.

A 7.1 quake has rocked Mexico City. Buildings swayed and people dove for cover, but there are now some reports of damage.At least 42 people ... continue reading


Never Miss any Updates!

Stay up to date with the latest news, information, and special offers.

Information
Learn about Catholic world

Catholic Online
Inform - Inspire - Ignite

Catholic Online Saints
Your saints explained

Catholic Online Prayers
Prayers for every need

Catholic Online Bible
Complete bible online

Catholic Online News
Your news Catholic eye

Daily Reading
Today's bible reading

Lent / Easter
Death & resurrection of Jesus

Advent / Christmas
Birth of Jesus

Rest of Catholic Online
All Catholic world we offer

Services
Products and services we offer

Catholic Online Shopping
Catholic medals, gifts & books

The California Network
Inspiring streaming service

Advertise on Catholic Online
Your ads on catholic.org

Catholic Online Email
Email with Catholic feel

Catholic Online Singles
Safe, secure Catholic dating

The California Studios
World-class post production service

Education
Learn the Catholic way

Catholic Online School
Free Catholic education for all

Student Classes
K-12 & Adult Education Classes

Catholic Online MasterClass
Learn from experts

School Teachers
Teacher lesson plans & resources

Catholic Media Missionaries
The New Evangelization

Support Free Education
Tax deductible support Free education

Socials
Connect with us online

Catholic Online on Facebook
Catholic social network

Catholic Online on Twitter
Catholic Tweets

Catholic Online on YouTube
Enjoy our videos

Catholic Online on Instagram
Shared Catholic moments

Catholic Online on Pinterest
Catholic ideas style inspiration

Catholic Online Logo

Copyright 2017 Catholic Online. All materials contained on this site, whether written, audible or visual are the exclusive property of Catholic Online and are protected under U.S. and International copyright laws, © Copyright 2017 Catholic Online. Any unauthorized use, without prior written consent of Catholic Online is strictly forbidden and prohibited.