Study on the elimination of energy subsidies published in Nature
Professor Massimo Tavoni from the Department of Management, Economics and Industrial Engineering on the research team
The prestigious scientific journal Nature has published a piece of research on the effects of eliminating public energy subsidies. Professor Jessica Jewell, from the University of Bergen, headed the research team, which also counted Professor Massimo Tavoni, from the Politecnico di Milano’s Department of Management, Economics and Industrial Engineering, among its members.
Fossil fuel subsidies are a system used by governments to reduce energy costs for consumers. A broad current of opinion holds that eliminating these subsidies would play a key role in mitigating climate change.
The study carried out by the research team would appear to attenuate this scenario, as it shows that how eliminating subsidies would actually have a surprisingly small impact on global energy demand and on CO2 emissions, mainly as a result of compensation effects in international trade and fuel switching. Furthermore, the authors concluded that the cancellation of subsidies would not significantly increase the use of renewable energy sources over the medium term. The article in Nature.
The article in Nature.