Giving the rich more of an incentive to use more of the dirty fuel. Not only relative to the poor, but also absolute versus sustainable energy sources. 6 x!
"Fossil-fuel consumers worldwide received about six times more state subsidies last year than were given to the renewable-energy industry (biofuels, wind power and solar energy combined) the International Energy Agency said today in its World Energy Outlook.
The subsidies are "creating market distortions that encourage wasteful consumption"
The costs of subsidies to fossil fuels generally outweigh the benefits.
While governments argue their policies are designed to help the poorest members of society, they generally fail to meet that goal, the IEA said. Just 8 percent of subsidies reached the poorest 20 percent of each country's population last year.
Fossil-fuel subsidies as presently constituted tend to be regressive, disproportionately benefitting higher income groups that can afford higher levels of fuel consumption. Social welfare programs are a more effective and less distortionary way of helping the poor than energy subsidies.
Cutting the payments would also help tackle climate change, the report said." Fossil Fuels Got More Aid Than Clean Energy: IEA
