Publication: The Road Not Taken?: Responding to the Energy Price Shock in East Asia
Date
2022-11-17
ISSN
Published
2022-11-17
Author(s)
Abstract
Several countries in East Asia have
increased fossil fuel subsidies to keep consumer prices
lower than currently high international prices. These
subsidies are discouraging the shift in consumption away
from fossil fuels, while high prices are encouraging
investment in new fossil fuel infrastructure. Providing
income transfers instead of price subsidies would encourage
consumption of cleaner alternatives, while softening the
welfare loss. And subsidizing investment in renewables would
avert the risk of being locked in to fossil fuels. The total
cost need not be higher than that of fossil fuel subsidies.
Link to Data Set
Citation
“Pollitt, Hector; Islamaj, Ergys; Kitchlu, Rahul; Le, Duong Trung; Mattoo, Aaditya; Mattoo, Aaditya. 2022. The Road Not Taken?: Responding to the Energy Price Shock in East Asia. Research & Policy Brief;No. 58. © World Bank, Washington, DC. http://hdl.handle.net/10986/38329 License: CC BY 3.0 IGO.”