Should Energy be Subsidized

Should Energy be Subsidized

To learn about energy subsidies and the forms that they assume

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.



  1. To learn about energy subsidies and the forms that they assume

  2.  To understand the impact of energy subsidies on the economy and on the environment

  3. To analyze the rationale behind extending subsidies to the renewable energy sector

  4. To analyze the impact of withdrawing subsidies to the non-renewable energy sector

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