Removal of fossil fuel subsidies can bring economic, social and environmental benefits in the long run. Fossil fuel subsidies encourage wasteful energy use and burden government budgets. On one hand, energy subsidies incentivise consumption and can result in increased energy demand. Hence, policymakers do not need to be concerned about possible negative effects when deciding whether to implement the energy subsidy reform. Public campaigns and education outreach on energy subsidies' removal will be needed to address lingering doubts on whether energy subsidies affect welfare, discourage investment, reduce competition, and obstruct Asean's goal of achieving higher income.

Source: Bangkok Post May 13, 2017 00:00 UTC