Energy Subsidies in Other Countries

A new report released by the Buenos Aires-based NGO Asociación Argentina de Presupuesto y Administración Financiera Pública (ASAP) reveals that Argentinean government subsidies have skyrocketed during the first trimester of 2008.

There are signs aplenty in rural Asia of the profligate use of energy - electrical and fossil fuel - but little evidence that such use is being assessed against its true costs. This is because supplying cheap power (and in some cases free power) is a valuable political lever. In rural Asia, the value of such 'support' can be judged by the scale of popular opposition to its withdrawal.

A paper from a scientific advisory board to the German ministry of agriculture examines bio-energy policy in Germany, and recommends certain forms of bio-gas as the most efficient ways to reduce greenhouse gases. According to the paper, the forms of bio-energy that have received the most attention from policy makers in Germany have been liquid biofuels.

A report released in January by a US steel industry group attempts to build the case that China's subsidies to its steel industry are in violation of its WTO commitments. China's steel production and consumption has expanded rapidly in recent years; in 2005 China become a net steel importer, a development directly correlated with generous energy subsidies that benefit the steel industry, according to the report.

On 1 January 2008, the governments of Mexico and the United States removed all remaining cross-border tariffs on agricultural products between the two countries. The move, required under the North American Free Trade Agreement (NAFTA), has been heavily criticized by agriculture interests on both sides of the border.

January saw the debate over biofuel policies in the European Union intensify, including over how (and if) biofuels should be supported by governments.

A U.S. consulting firm has released a study that says renewable power and biofuels could supply up to 16 percent of global electric and transport needs, but that government policies such as mandates and subsidies will need to be key drivers.

A survey of agricultural accountants in the United Kingdom finds that subsidies accounted for nearly 97 percent of farm profits in 2006/07. According to the survey by the Institute of Chartered Accountants, the average net profit for British farms was £46,300, while average subsidy receipts were £45,000.