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Is it the time to remove Subsidy on Fossil Fuels to save the Global Economy – Concerns & Solutions

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Subsidy on Fossil Fuels

Well it’s a very heated topic about the subsidy given by the countries for the fossil fuel. The subsidy does nothing good but only adds to the concern of the economy by rising deficit. Taking in to consideration the global economy and the environment, one way of helping the environment remain green and reduce the consumption of fossil fuel (which is already very limited in amount and due to heavy consumption are being depleted rapidly every other day), is that the countries should do away with subsidies for fossil fuels.

The step will help mitigate the impact of climate change. It seems very good on papers but in actual real world, the implementation of the same is equally difficult and impossible. India and many other countries currently provide subsidies on the fossil fuel like Diesel, Petrol, Kerosene etc. In order to tackle climatic change globally, the subsidies can be abolished completely. If we talk about the country Tunisia, we see that the fossil fuel subsidies do not help in protecting the poor and thus not much good is done by providing them generously. Fossil fuel subsidies are fundamentally not progressive; in order to protect the poor the fossil fuel subsidy does nothing. To tackle the growing climatic concern, it is important that the steps should be taken now before it is too late.

Read on GWI Advantages and Disadvantages of Fossil Fuels.

Concerns Of the Global Economy

i) Global Warming – A report published by World Bank in November, clearly stated that the temperature of the earth is expected to rise by another four degree Celsius.

ii) Environment Disruption – The rise will mark an extreme condition characterized by heat-waves, declining global food stocks, loss of ecosystems and biodiversity and life-threatening sea level rise.

iii) Carbon Emission – If we go by the historical trend of carbon emission, many countries are yet to implement any check on the carbon emitted.

iv) Alarming Increase in Population – The increasing population and consumption of natural resources is creating a burden on the earth, which will soon result in eradication of life in earth.

v) Limited Land Area – If the trend of population is checked and compared with the earth’s capacity to sustain life, it is expected that by 2020, 1.5 times of earth space would be required for a person to sustain life.

Also Read about Diesel Price Hike and Deregulation by Government of India.

Solutions for creating a Better World

It is very important that the efforts are made in the right direction to deal with the problem at the grass root level and help them solve from the root cause. There are a lot of different solutions to keep a check on the climate change.

i) Implementation of a stable price for carbon is one of the measures which will help save the global environment from deteriorating.

ii) Establishment of a market for carbon trading needs to be implemented sometime soon so that we can have more green cities to fight with the problem.

iii) Efforts should be made to end poverty and educate women by giving them equal rights and benefit.

iv) The measures to some extent, will help keeping a check on the population in rural areas especially in countries like India.

v) It is a known fact that the emerging economies currently play a vital role in the development of the global economy. Thus it is important that the focus is shifted on these economies so that they implement various pollution free methodology of generating power, etc.

vi) Use of renewable energy should be implemented along with CleanTech.

a. Proper plans and industries should be set up which will help these economies from getting exploited.

b. The green energy system will not only help the environment but will also provide jobs to millions of youth in the economy which in turn will reduce corruption and other problems of the economy.

Thus we can say, that the time has come to understand the need of green and safe environment absence of which will only add to the misery.

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Niraj Satnalika

Niraj is an MBA in International Business (Finance). Prior to this he completed B.Tech in Electronics and Instrumentation. He is currently working with Confederation of Indian Industry (CII), Kolkata in capacity of Consultant. Satnalika is actively involved with an NGO and works towards promoting education among the underprivileged.

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