Why is it that fossil fuel industries are getting such massive subsidies? The IMF wants to know too:
Developing and industrialized countries should rein in energy subsidies that totaled $1.9 trillion in 2011 to ease budgetary pressures and free resources for public spending in areas like education and health care, International Monetary Fund economists said in a research paper published Wednesday.
In the paper, “Energy Subsidy Reform — Lessons and Implications,” the economists reviewed a database of 176 countries and analyzed ways to change energy subsidies by examining case studies of 22 countries.
In 2011, energy subsidies intended to contain energy prices for consumers accounted for 2.5 percent of global gross domestic product, or 8 percent of all government revenue, the fund said.
It occurs to me that without these subsidies, energy prices would be shooting upwards due to peak oil, possibly causing a nationwide panic. Then maybe the federal government would have a very difficult time justifying these subsidies, which would panic the 1% who control the fossil fuel industries.
