October 13, 2011
When Subsidies Are Not on the Level
Adnan Amin, The National
Are the high oil prices we've seen this year good for renewables?
Everybody talks about the end of cheap oil. We're getting to the point where oil is not a resource that we're going to see priced in the way that it has been in the past.
The real issue is part of a broader global economic picture. We have a global economy that is suffering serious dislocation right now. We have serious disequilibrium in many mature economies. Part of the driver of economic growth is energy, and oil has been part of that equation. With the high prices that we see for oil twinned with the massive subsidies that are going on for oil and coal, we see a kind of market distortion that is preventing the optimal allocation of resources. . .
TAGGED: energy subsidies, oil, global energy consumption, renewable energy initiatives, The National, International Renewable Energy Agency