Friday, September 25, 2009

G-20 Punts On Deadline To Phase Out Fossil Fuel Subsidies

The Group of 20 (G-20) nations agreed to phase out government subsidies for the production and consumption of fossil fuels but did not include a deadline. The phase-out of fossil fuel subsidies had been touted by Obama administration officials as the centerpiece of the environmental initiative.

The Center promotes the efficient use of natural resources, regardless of the type. Thus, if subsidies are going to be phased out for fossil fuels, then all subsidies for all fuels should be phased out. The Center also opposes using price as a conservation driver, preferring the production of abundant supplies that are provided at reasonable prices. Technologies can still be utilized to achieve beneficial efficiencies and subsidies for this purpose are appropriate. (WSJ, 9/25/09)

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