Fossil Fuel Subsidies Harm the World and Its People

The world is spending billions of dollars on subsidies on fossil fuels. According to the Overseas Development Institute, wealthy countries are spending more on fossil fuel subsidies than what they are spending on helping poorer nations combat climate change. Based on the International Monetary Fund and the International Agency, a fossil subsidy consists of national governments giving financial aid to coal, gas, and oil producers and consumers.

                For example, in 2011,the United States provided farmers with a fuel tax exemption worth a billion dollars, $1 billion to the strategic petroleum reserve, and half a billion for coal, gas, and oil research and development. In the same year, Germany provided $1.9 billion euros to the coal sector. Britain provided tax concessions worth 280 million euros for oil and gas production. Rich governments have not attempted to put a price on carbon and to promote companies to use alternative resources.

                In developing countries such as Pakistan, Venezuela, and Indonesia, the government gives subsidies in an attempt to help the poor people with lower fuel prices. These countries are spending more money on these subsidies than on public health by more than double. The people benefited from the subsidies are the providers of the fossil fuels, and the subsidies have a negative impact the people in poverty who pay taxes. According to Kevin Watkins, Executive Director of the Overseas Development Institute, “the top 20 percent of the societies get about half of the total subsidy package”.  Most of the energy support, about 75 percent, from international banks went to fossil fuel projects in some of the top high emitting developing nations. In addition, global subsidies for fossil fuels are six times higher than the subsidies given for renewable energy. The ODI hopes that countries make an agreement that benefits the government, consumers, and the environment.

                Developing countries place a higher concern on fossil fuels than on the education and health of their people. The residents of the countries, especially the poor, are paying the consequences for the government’s decision. They pay taxes but receive little benefits from the government, who provide the rich with more money through the subsidies. In developed countries, the option of using renewable energy exists, but for some reason, the government still latches on fossil fuels as the primary source of energy. By consuming fossil fuels, the world is accelerating climate change; if the countries’ government placed restrictions on the consumption of fossil fuels, the world will cause less damage to the environment. The gap between the rich and poor will lessen, and the government will provide people with the services they need for their health and well being.

Based on  http://www.bbc.co.uk/news/science-environment-24833153