Energy Subsidies in Other Countries

The government of Kenya has launched the pilot phase of a subsidy program which aims to provide poor Kenyans with a monthly cash allowance to meet their basic food needs.

A new report by the Global Subsidies Initiative (GSI) quantifies government support for biofuels in Canada, and analyzes whether this expenditure represents good value for Canadian taxpayers. Biofuels – At What Cost?

American pulp and paper companies have begun increasing their use of fossil fuels in order to become eligible for a renewable-energy tax credit, while also reaping millions of dollars in tax rebates. The renewable-energy tax credit in question was originally meant to encourage transport companies to blend fossil fuels with alternative fuels to power their vehicles.

A policy brief from the Global Development and Environment Institute (GDEA) at Tufts University examines the link between bloated U.S. farm subsidies and expanding waistlines in the United States. Consumer advocates have argued that US farm subsidies that lower the cost of corn are a key reason why consumption of high fructose corn syrup (HFSC) has sky-rocketed over the last four decades.

Three recent reports by the Global Subsidies Initiative (GSI) survey subsidy policies for biofuels in China, Malaysia and Indonesia. The reports marks a shift in focus for the GSI’s “Biofuels At What Cost?” series, from biofuel subsidy policies in OECD countries—which account for the lions share of global government support for biofuels—to that of certain developing countries that have stood poised to capitalize on heightened interest in these renewable fuels.

The Nigerian federal government has announced plans to cut its subsidies for petroleum fuels, saying that the price tag has become unaffordable. According to the federal government, Nigeria spent over US$4.3 billion on petroleum fuel subsidies in 2008. Despite its significant oil reserves, Nigeria imports much of its petroleum products, before selling them at below market rates.

The U.S. Congress has closed a controversial loophole that allowed foreign-produced biofuels consumed outside the U.S. market to, nevertheless, benefit from U.S. subsides. The new provision, added by the House of Representatives to the US$ 700 billion financial system bailout legislation, would end the biodiesel credit for fuel “produced outside the US for use as a fuel outside the US”.