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Subsidizing Fuel is the World's Worst Energy Policy, Professors Argue
🇨🇭 Switzerland /Energy & Infrastructure

Subsidizing Fuel is the World's Worst Energy Policy, Professors Argue

From Le Temps · () French

Translated from French and summarized by DistantNews. Read the original for the full story.

At a glance

Opinion Named sources Context piece
  • Professors Paasha Mahdavi and Michael Ross argue that fuel subsidies are the world's worst energy policy.
  • They contend that while the war in Iran presents an opportunity to shift from fossil fuels, government subsidies will hinder this transition.
  • Nearly half of the world's countries have implemented emergency measures that will slow, increase costs, and reduce equity in the shift to cleaner energy.

Professors Paasha Mahdavi and Michael Ross assert that subsidizing fossil fuels represents the most detrimental energy policy globally. They argue that current geopolitical events, such as the war in Iran, offer a critical juncture to accelerate the world's transition away from these polluting energy sources.

The war in Iran offers a unique opportunity to accelerate the transition away from fossil fuels.

— Paasha Mahdavi and Michael RossThe professors introduce the context of current global events and their potential impact on energy policy.

However, the professors warn that governments worldwide are implementing emergency measures to shield citizens from soaring fuel costs. These actions, intended as short-term relief, will ultimately have catastrophic long-term consequences. Instead of encouraging a shift to more affordable and sustainable options like wind and solar power, these subsidies inadvertently prolong reliance on fossil fuels.

But governments' measures to help citizens cope with unaffordable fuel prices will have catastrophic consequences in the future.

— Paasha Mahdavi and Michael RossThe professors express their concern about the long-term effects of short-term government interventions.

Between February and July 2026, a significant number of countries, 89 in total, have enacted emergency measures in response to public frustration over rising energy prices. Mahdavi and Ross contend that these interventions, while politically expedient, will make the necessary energy transition slower, more expensive, and less equitable for everyone involved. They emphasize that the current high prices and uncertain future of oil and gas should be driving adoption of cheaper renewables, but subsidies counteract this momentum.

each day that oil and gas prices remain high and the future of supply uncertain, wind and solar power, which have never been cheaper, gain attractiveness.

— Paasha Mahdavi and Michael RossThe professors highlight the increasing competitiveness of renewable energy sources.
About this summary

Originally published by Le Temps in French. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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