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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

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
yes I'm doing my masters in nanotechnology, we are being studying all these domains as well..
what school?
biomolecules are e building blocks of every organics and inorganic materials.
anyone know any internet site where one can find nanotechnology papers?
Damian Reply
sciencedirect big data base
Introduction about quantum dots in nanotechnology
Praveena Reply
what does nano mean?
Anassong Reply
nano basically means 10^(-9). nanometer is a unit to measure length.
do you think it's worthwhile in the long term to study the effects and possibilities of nanotechnology on viral treatment?
Damian Reply
absolutely yes
how to know photocatalytic properties of tio2 nanoparticles...what to do now
Akash Reply
it is a goid question and i want to know the answer as well
characteristics of micro business
for teaching engĺish at school how nano technology help us
Do somebody tell me a best nano engineering book for beginners?
s. Reply
there is no specific books for beginners but there is book called principle of nanotechnology
what is fullerene does it is used to make bukky balls
Devang Reply
are you nano engineer ?
fullerene is a bucky ball aka Carbon 60 molecule. It was name by the architect Fuller. He design the geodesic dome. it resembles a soccer ball.
what is the actual application of fullerenes nowadays?
That is a great question Damian. best way to answer that question is to Google it. there are hundreds of applications for buck minister fullerenes, from medical to aerospace. you can also find plenty of research papers that will give you great detail on the potential applications of fullerenes.
what is the Synthesis, properties,and applications of carbon nano chemistry
Abhijith Reply
Mostly, they use nano carbon for electronics and for materials to be strengthened.
is Bucky paper clear?
carbon nanotubes has various application in fuel cells membrane, current research on cancer drug,and in electronics MEMS and NEMS etc
so some one know about replacing silicon atom with phosphorous in semiconductors device?
s. Reply
Yeah, it is a pain to say the least. You basically have to heat the substarte up to around 1000 degrees celcius then pass phosphene gas over top of it, which is explosive and toxic by the way, under very low pressure.
Do you know which machine is used to that process?
how to fabricate graphene ink ?
for screen printed electrodes ?
What is lattice structure?
s. Reply
of graphene you mean?
or in general
in general
Graphene has a hexagonal structure
On having this app for quite a bit time, Haven't realised there's a chat room in it.
what is biological synthesis of nanoparticles
Sanket Reply
what's the easiest and fastest way to the synthesize AgNP?
Damian Reply
how did you get the value of 2000N.What calculations are needed to arrive at it
Smarajit Reply
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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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