Will India’s coalition government be the next victim of political backlash against fossil fuel subsidy reform? Last Friday, squeezed by rising oil prices and growing fiscal strain, the Government reduced subsidies on diesel, and prices jumped 14%. The Chief Minister of West Bengal and leader of junior coalition partner in the Congress-led Government has threatened to walk out of the coalition, while more radical voices on both left and right have backed demonstrations and strikes. India’s unrest adds to riots this year in Nigeria, Indonesia and Sudan over subsidy reform.
I have just posted the following as a guest on Duncan Green’s From Poverty to Power blog:
In recent years up to $500 billion a year or more has been spent globally on making high-carbon fuels cheap, with around 40% of that in developing countries, including some of the big emerging economies such as China, India, Indonesia and South Africa.
From a policy perspective, reducing fossil fuel subsidies is a no-brainer. Continue reading
Last week the UK Energy Research Council produced a big report on the route to a demonstration of carbon capture and storage (coordinated by my Sussex colleague Jim Watson), informed by past experience of stimulating innovation in similar types of large scale energy engineering technology. In theory, Continue reading
Last year I blogged on Walter Russel Mead’s analysis that linked climate denial to a tradition of American populism. At one level it is obvious that there is an association between climate scepticism and populists (such as the lovely Jeremy Clarkson). But in this post I explore those links more deeply, inspired by Paul Taggart’s excellent book on populism. Continue reading
Dieter Helm, centre right economist and newly appointed Chair of the Natural Capital Committee has just produced an interesting new essay (hat tip to Matthew Spencer). His approach draws a lot on the work of people like Kenneth Arrow and Partha Dasgupta who have argued for the need to measure the “assets” of the natural world (including a safe atmosphere and biodiversity). What is new is his argument that maintaining these assets should be the primary aim of the state in the 21st century. Continue reading