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And with deeply underpriced energy in Venezuela there has been very rapid and unsustainable rates of growth in energy consumption. By 2013, subsidies to domestic consumers of fossil fuels reached $28 billion, or more than 7% of GDP, a far greater percentage than expenditures on education or health.

Some believe that the demand for energy for vehicle use is very inelastic even in the longer run, so that higher prices for gasoline and diesel fuel would have little effect on consumption. Experience worldwide clearly shows that this is not true. Rather, heavy subsidies on fossil fuels lead to very significant overconsumption. Any doubts as to this fact may be easily dispelled by comparing the pattern of fossil fuel consumption in the Gulf States of the Mideast with that of the rest of the world. These countries are major producers of oil: Saudi Arabia, Kuwait, Qatar, Bahrain and the United Arab Emirates. All of these countries have deeply underpriced gasoline and diesel fuel for nearly a half centiury. While they have only about 1% of the world’s population, inhabitants consume 5% of global oil supplies annually. Jim Krane, Guzzling in the Gulf , Foreign Affairs , November 2014. This is because the heavy subsidization has caused consumption of fossil fuels in this region to grow at 8 percent per year since 1972, compared to only 2% for the rest of the world.

While heavy subsidies on energy consumption have been near universal among other nations as well, including such emerging ones as Nigeria and Venezuela, several developed nations.

However, many countries including the United States also subsidize consumption of fossil fuels, typically in the form of gasoline and diesel fuel taxes that are much lower than the marginal cost of road use. But in rich nations these subsidies amount to only about $25 Billion per year, or about $25 per capita. Poor nations (in 2007) spent $310 billion on such subsidies.

Per capita subsidies for energy consumption in many emerging nations on a per capita basis have been substantial, as shown in Table 15-1.

Table 15-1 per capita subsidies for energy use (2011)
Country Per Capita
Saudi Arabia $1,036
Iran $ 786
Venezuela $ 647
Russia $ 359
Indonesia $ 102
Egypt $ 11
Average for all developed nations $ 25

The subsidies also constitute a sizeable share of GDP in nearly a dozen other nations, ranging from 11% or more in Bahrain, Egypt, Iran and Ecuador, and as low as 2.5% in India or 2% in Mexico.

Table 15-2 fossil fuel subsidies (11 nations as percent of gdp (2011 and 2013)
Country Subsidies as % GDP
Bahrain 12.5 (2013)
Egypt 11 (2011) 6.5 (2013)
Ecuador 11 (2011) 6.5 (2013)
Venezuela 7 (2013)
India 2.5% (2013)
Iran 11.5 (2011)
Jordan 4.5 (2013)
Kuwait 9 (2013)
Mexico 2 (2011)
Morocco 4 (2013)
Saudi Arabia 7 (2011)
Tunisia 4 (2013)
Source: The Economist, Various Issues 2011, 2013.

The subsidies are usually justified by the claim that they help poor consumers of fossil fuel. As shown below, this claim is incorrect. But we do know that the subsidies vastly increase fossil fuel consumption and pollution, though their effects on encouraging greater vehicle use. Also the subsidies contribute to the growth of greenhouse gasses from combustion of fossil fuels. They are also very expensive in the public budgets of nations that use them.

Questions & Answers

where we get a research paper on Nano chemistry....?
Maira Reply
nanopartical of organic/inorganic / physical chemistry , pdf / thesis / review
Ali
what are the products of Nano chemistry?
Maira Reply
There are lots of products of nano chemistry... Like nano coatings.....carbon fiber.. And lots of others..
learn
Even nanotechnology is pretty much all about chemistry... Its the chemistry on quantum or atomic level
learn
Google
da
no nanotechnology is also a part of physics and maths it requires angle formulas and some pressure regarding concepts
Bhagvanji
hey
Giriraj
Preparation and Applications of Nanomaterial for Drug Delivery
Hafiz Reply
revolt
da
Application of nanotechnology in medicine
what is variations in raman spectra for nanomaterials
Jyoti Reply
ya I also want to know the raman spectra
Bhagvanji
I only see partial conversation and what's the question here!
Crow Reply
what about nanotechnology for water purification
RAW Reply
please someone correct me if I'm wrong but I think one can use nanoparticles, specially silver nanoparticles for water treatment.
Damian
yes that's correct
Professor
I think
Professor
Nasa has use it in the 60's, copper as water purification in the moon travel.
Alexandre
nanocopper obvius
Alexandre
what is the stm
Brian Reply
is there industrial application of fullrenes. What is the method to prepare fullrene on large scale.?
Rafiq
industrial application...? mmm I think on the medical side as drug carrier, but you should go deeper on your research, I may be wrong
Damian
How we are making nano material?
LITNING Reply
what is a peer
LITNING Reply
What is meant by 'nano scale'?
LITNING Reply
What is STMs full form?
LITNING
scanning tunneling microscope
Sahil
how nano science is used for hydrophobicity
Santosh
Do u think that Graphene and Fullrene fiber can be used to make Air Plane body structure the lightest and strongest. Rafiq
Rafiq
what is differents between GO and RGO?
Mahi
what is simplest way to understand the applications of nano robots used to detect the cancer affected cell of human body.? How this robot is carried to required site of body cell.? what will be the carrier material and how can be detected that correct delivery of drug is done Rafiq
Rafiq
if virus is killing to make ARTIFICIAL DNA OF GRAPHENE FOR KILLED THE VIRUS .THIS IS OUR ASSUMPTION
Anam
analytical skills graphene is prepared to kill any type viruses .
Anam
Any one who tell me about Preparation and application of Nanomaterial for drug Delivery
Hafiz
what is Nano technology ?
Bob Reply
write examples of Nano molecule?
Bob
The nanotechnology is as new science, to scale nanometric
brayan
nanotechnology is the study, desing, synthesis, manipulation and application of materials and functional systems through control of matter at nanoscale
Damian
Is there any normative that regulates the use of silver nanoparticles?
Damian Reply
what king of growth are you checking .?
Renato
What fields keep nano created devices from performing or assimulating ? Magnetic fields ? Are do they assimilate ?
Stoney Reply
why we need to study biomolecules, molecular biology in nanotechnology?
Adin Reply
?
Kyle
yes I'm doing my masters in nanotechnology, we are being studying all these domains as well..
Adin
why?
Adin
what school?
Kyle
biomolecules are e building blocks of every organics and inorganic materials.
Joe
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Source:  OpenStax, Economic development for the 21st century. OpenStax CNX. Jun 05, 2015 Download for free at http://legacy.cnx.org/content/col11747/1.12
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