The Politics of Fossil-Fuel Subsidies

This research paper examines the political challenges associated with the creation and removal of fossil-fuel subsidies, noting that while such subsidies often lack a legitimate purpose, they persist due to pressure from well-organized political groups.

• Governments allocate significant financial resources to fossil-fuel subsidies, which results in negative impacts on pollution, energy markets, and public budgets.
• Despite a general consensus among analysts that most fossil-fuel subsidies lack a legitimate purpose, implementing cuts to these subsidies is very difficult because they serve as a tool for governments to provide benefits to politically well-organized groups.
• To increase the likelihood of successful subsidy reform, broader reforms and enhancements in public administration may be necessary to establish mechanisms that compensate those who lose politically from the reforms.

APA

, (2010). The Politics of Fossil-Fuel Subsidies. International Institute for Sustainable Development. https://www.iisd.org/publications/report/politics-fossil-fuel-subsidies

Chicago

,. The Politics of Fossil-Fuel Subsidies. International Institute for Sustainable Development, 2010. https://www.iisd.org/publications/report/politics-fossil-fuel-subsidies.

Wikipedia

{{cite report |last1=, |title=The Politics of Fossil-Fuel Subsidies |publisher=International Institute for Sustainable Development |date=21 April 2010 |url=https://www.iisd.org/publications/report/politics-fossil-fuel-subsidies |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{2010politics, author = {,}, title = {{The Politics of Fossil-Fuel Subsidies}}, institution = {International Institute for Sustainable Development}, year = {2010}, month = apr, url = {https://www.iisd.org/publications/report/politics-fossil-fuel-subsidies}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }