U.S.-based energy policy experts Paasha Mahdavi and Michael Ross argue that governments implementing consumer fossil fuel subsidies in response to rising energy prices constitute the “worst energy policy in the world.”
Their research indicates these subsidies drain government budgets, worsen air pollution, and hinder investment in renewable energy. The authors note that subsidy reforms are often unsuccessful, with many collapsing within a year and over 90% disappearing within three years. While Mexico achieved a successful subsidy removal around 2017 after a complex process, such instances are rare.
Source: Mongabay