11 Jan '12, 10pm

End fuel subsidies to cut waste - TODAYonline

Fuel subsidies are the crack cocaine of global economic development: Easy to get hooked on, hard to give up. And as every addict knows, there are good and bad ways to try to kick the habit. Consider Nigeria and Iran. In Nigeria, the government's recent decision to remove fuel subsidies and more than double the price of petrol has led to riots and now a nationwide strike. Two years ago in Iran, an initiative to cut subsidies and almost quadruple the price of petrol (as well as boost the price of food and water) provoked little unrest, lowered oil consumption and bolstered the economy and the government. The differences between the two efforts offer valuable lessons about the best ways to eliminate fossil-fuel subsidies - a staggering global misallocation of resources that does little to help the poor, distorts markets and pumps more greenhouse gases into our atmosphere. In ...

Full article: http://www.todayonline.com/Commentary/EDC120112-0000003/E...

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