Implications of A Different type of Entitlement Program
I’ve written about the insidious circle of Middle East’s domestic energy subsidies – cheap water/energy requires cheap oil/gas which drives sharp consumption/waste. In some fashion, this is understandable/necessary so satisfy social needs in high poverty populations. However, the IEA reports that 80% of global energy subsidies benefit the 40% wealthiest consumers. The region’s projected electricity needs are rising at 8-10% over the next decade, on a 1.5% population growth rate. This month, Saudi Arabia announced a multiyear program to encourage (a) education on energy conservation, (b) upgrades to efficient appliances, and (c) programs to improve insulation in construction. Hoo-ray.