Renewables should shine in an energy crisis like the one Europe is going through right now, when prices for natural gas and electricity are at all-time highs.
The more households and businesses are hurt by how volatile fossil fuel markets are, the better wind and solar should be, since they produce electricity at a
But government subsidies for fossil fuels change this because they keep people from seeing how much they really cost. And in 2021, fossil fuel subsidies
around the world were almost double what they were the year before, according to a study done by the Organization for Economic Co-operation and
Development (OECD) and the International Energy Agency on August 29. Greg Garsous, an OECD trade policy analyst, said, "The worry here is that if you
change the prices of fossil fuels with these support measures, you kill or at least mute the price incentives to switch to other fuels and make a low-carbon
The price of oil and gas, which fell during the pandemic and slowly went back up in 2021, is the reason for the jump. In many low-income countries and major
oil and gas exporters, like Saudi Arabia, the retail price of electricity, natural gas for heating and factories, and gasoline for cars is heavily subsidized.
richer or more dependent on imports, like the US, can write off some of their energy costs on their taxes.
the better wind and solar should be, since they produce electricity at a steady, low price.
So, as the price of commodities goes up, governments lose more money.