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 : ECON021 For delivery in electronic format: Rs. 300;
For delivery through courier (within India): Rs. 300 + Rs. 25 for Shipping & Handling Charges

Themes

Economics
Case Length : 14 Pages
Period : 1990-2007
Pub Date : 2007
Teaching Note : Not Available
Organization : -
Industry : Energy
Countries : Worldwide

Abstract:

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.

Economics | Case Study in Management, Operations, Strategies, Business Strategy, Case Studies

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:

  Page No.
Introduction 1
Energy Subsidies: The Whys and the Hows 2
Subsidies, Rising Energy Prices, and The Environment 4
Future Outlook 8
Exhibits 10

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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