Revision as of 07:56, 12 July 2011

Normally subsidies would not be necessary in a perfect world. There is a lot of momentum to not subsidize infrastructure expansion but make this the responsibility of the private sector, and let it be the outcome of market development. However, to realize this in the presence of prevailing market failures, non conducive policy frameworks and lack of supportive concessional financing, and generally low disposable incomes for the target population, much more capacity development and institutional reforms are required than is realistically possible. It is nearly impossible to address all these shortcomings simultaneously and expect markets to take care of public service delivery. Hence, progress and achievements are greatly facilitated when subsidies can be used to provide smart incentives.

Introduction

Indeed, subsidies were considered taboo by the international development community for a long time, but momentum is slowly gaining in favour of newly applying limited subsidies. Such subsidies should be designed to stimulate and initiate markets, avoid supporting the costs of operation and/or consumption in the long-run, and have a credible and transparent exit strategy. EnDev incorporated subsidies as an efficient and transparent mechanism to accelerate access to modern energy in rural and peri-urban areas.

We should not forget that the infrastructure in industrialized countries was built with a high level of subsidies and public support! Electricity has been around for more than 100 years now, but the bulk of the SSA population still does not have access and remains in the dark. This in itself could be sufficient reason to develop an emergency program to correct this and apply subsidies accordingly.

Sometimes pure logic or economic analysis fails to indicate that subsidies should be awarded after all: modern technologies are often cheaper in terms of life cycle costs / levelized energy costs compared to prevailing traditional technologies and services; data clearly shows that 4-7 month payback times exist for investing in modern lighting services. Yet, people are not investing on a large scale as could be expected. An explanation is that poor households already spend one third of their income on traditional energy like candles, kerosene and fuel wood and have no means to invest in modern technology, however urgently they are willing to do so. Subsidies really do make a difference, for households to invest in the modern technology and for the private sector to develop the infrastructure to deliver such technology. It is important to face and accept the basic trade-off: speed vs. sustainability. Access is long overdue and the focus should be on realizing this first, but in a sustainable manner and using minimum levels of subsidy.

It helps to make the subsidy support transparent; in most countries today, it is impossible to indicate the contribution of subsidies in the supply of grid electricity. Most likely these subsidies are huge, compounded throughout the supply chain: the generation capacity is subsidized, the fuel is subsidized or detaxed, the expansion of the transmission and distribution network is subsidized, connection fees and tariffs are subsidized, etc. Revenues from consumers do not cover the full costs of generation, transmission, distribution and bill collection.

In Rwanda[1] the electricity Roll-out program intends to connect 250,000 new customers over the next few years and applies a beneficiary contribution of less than 10% of the real cost of connection. It is not phrased as a subsidy, but effectively it is; imagine what could have been done with this amount of money in support of finding modern energy solutions for all rural households! In Senegal[2] several concessions have been awarded for increasing access to electricity; the average subsidy for a new connection in concession areas is about $350; alternatively, one could hand out for 5-7 free PV lanterns for the same amount.

Only a transparent cost and price structure lays the basis for continued discussion and optimization of the support given, the more so since subsidies always remain the outcome of a political process. Although this process cannot or should not be stopped, the subsidies it awards should be made transparent so that beneficiaries and non-beneficiaries alike understand where the support went.

Source: Robert vd Plas, Florian Ziegler in "EnDev Discussion Paper April 2010: Electricity Access for All - Illussions and Solutions"

[1] Lighting Africa Country Study (work in progress)

[2] Lighting Africa Country Study (work in progress)

Typology

....

Transparency

GTZ Position (Subsidies….A Think Piece; Fuel Price Index; Access for All – Illusions and Solutions; REN21 etc.): Mehr Transparenz über Kosten und Preise ist die Voraussetzung für eine vermehrte Diskussion/Partizipation und kann zum Abbau von Subventionen führen. Es gibt zwar viele Lobbygruppen, die ein Interesse an Intransparenz haben. Dennoch nutzt die Transparenz der Politik letztlich, weil sie damit zusätzliche Argumente für den Abbau von Subventionen erhält. In DE wurde mit dem 20. Subventionsbericht (2003) ebenfalls eine Neuabgrenzung der Finanzhilfen vorgenommen, die den Regelungen der EU-Energiesteuerrichtlinie (RiLi 2003/96/EG) entspricht und für mehr Transparenz sorgt.

Siehe dazu auch: GSI/UNEP, April 2010: “Gaining Traction: The importance of transparency in accelerating the reform of fossil-fuel subsidies”

Aus dieser Studie:

Transparency as a foundation for reform

Transparency can influence reform in at least four ways (Hale, 2008):

1. by institutionalizing public discourse: the act of disclosure starts a dialogue between the discloser and

interested parties;

2. by compelling actors to tell the truth, making it difficult for discourse to be manipulated by one “loud,”

deceitful actor;

3. by cutting through the flood of information and often contradictory claims to focus attention on facts;

and

4. by promoting self-reflection within the organization or government, compelling actors to comply with

their own standards and norms.

In considering the extent to which improving transparency could assist reform, the key consideration appears

to be one of ensuring its relevance. For transparency to be useful, information users and providers must desire

disclosure of the information and see how such transparency can help meet their objectives.

Improved information about fossil-fuel subsidies, in particular, can help governments meet their reform

objectives. At the simplest level, information about the subsidy and its effects facilitates an assessment of its

costs and benefits and, therefore, of the implications of reform. Making this information publicly available

increases awareness of the effects of existing policies and allows public input to decision-making (Wolfe and

Helmer, 2007).

Many governments understand the economic, social and environmental problems created by subsidies, but

are under political pressure to maintain them. Transparency can expose those winners and losers created by

subsidies and therefore help to broaden support for reform (Victor, 2009)....

Global Subsidies Initiative (GSI) - "The Effects of Fossil-Fuel Subsidy Reform: A review of modelling and empirical studies" The Global Subsidies Initiative (GSI) releases the publication of Jennifer Ellis’ paper “The Effects of Fossil-Fuel Subsidy Reform: A review of modelling and empirical studies.” This is the second paper to be published in the series Untold Billions: Fossil-fuel subsidies, their impacts and the path to reform. Subsidies are powerful instruments and when granted to fossil fuels, which are at the heart of all modern economies, subsidies have impacts throughout the economy, society and environment. Understanding the complex trade-offs between the different impacts of subsidy reform is a challenge for any government considering phasing out fossil-fuel subsidies. In this report, Jennifer Ellis provides a detailed literature review, focusing on the six modeling studies in the last 20 years that have attempted to analyze global impacts of subsidies for all fuels. The studies mostly considered effects on greenhouse gas emissions and gross domestic product, but very little of the work has considered other environmental impacts or social impacts. The paper highlights a number of areas where further research should be undertaken but concludes that there is already enough evidence to demonstrate the significant environmental and economic benefits of phasing out fossil-fuel subsidies, and recommends that policy-makers do not delay in beginning the reform process.<o:p></o:p>

Download at: http://www.globalsubsidies.org/en/research/economic-social-and-environmental-effects .<o:p></o:p>

EARTH TRACK: EIA Energy Subsidy Estimates: A Review of Assumptions and Omissions <o:p></o:p>

This Review provides a detailed look at gaps in federal tracking of energy subsidies in the United States. In addition to evaluating the research approach used by the US Energy Information Administration (EIA), the Review assesses how key assumptions and omissions in EIA's work resulted in a substantial undercounting of federal energy subsidies and an inaccurate portrayal of subsidy distribution across fuels. EIA estimates are also placed in the context of other assessments of domestic energy subsidies conducted over the past thirty years.<o:p></o:p>

IMF Note - Petroleum Product Subsidies: Costly, Inequitable, and Rising Petroleum product subsidies have again started to rise with the rebound in international prices. This note reviews recent developments in subsidy levels and argues that it is necessary to reform the policy framework for setting petroleum product prices in order to reduce the fiscal burden of these subsidies and to address climate change. In 2003, global consumer subsidies for petroleum products totaled nearly $60 billion. Read more: http://www.imf.org/external/pubs/ft/spn/2010/spn1005.pdf<o:p></o:p>

Subsidies for Solar Home System Promotion

So far all SHS programmes have relied on subsidies of one sort or another. In doing so it is often argued that market imperfections (e.g. lack of private financial institutions in rural areas, lacking information on available SHS options) justify the subsidisation of SHS or related activities. The challenging task is then how to target and allocate those corrective subsidies. This is a difficult question because what is deemed a market imperfection may well be economic barriers or transaction costs correctly priced by the market. For instance, is it a market imperfection that small amounts of money are more costly to lend than large amounts, or that lending against a steady stream of income is less risky than a loan given to a household with irregular or no income? Probably not. One could still make a case for special support measures that redress social or economic imbalances, but the case would rest on other arguments than that of imperfect or distorted markets.

Hence, the core of the discussion on subsidies boils down to the question whether SHS serve economic development or other public policy objectives. If this question is answered in the affirmative, the alleged violations of free market principles often criticised by opponents of subsidisation appear in a different light. However, the claim of contributing to the achievement of general welfare objectives has important impacts on the design of projects: SHS projects should be designed as but one component of a larger programme aiming at a variety of development objectives like power sector reform, rural electrification, and rural development.

There are direct and indirect subsidies to be found in all projects supported governmentally and internationally, and at all levels. Subsidies are quite often undisclosed, and therefore not transparent enough to be clearly recognised as such by those who would benefit, and those who have the political authority to decide in favour. This leads to SHS financing programmes that are not able to fulfil the standards of finance sector conformity and long-term sustainability. In the partly controversial discussion going on about subsidies, the view that SHS can be propagated with the help of subsidies, as long as they are transparent, serve public interest and do not distort the market, seems to be gaining ground.

Possible direct subsidies for solar systems:

Direct price subsidies of systems that meet minimum specs and or providers who guarantee local hubs for replacements and repair.
Direct subsidies to compensate quality investments, warranty and recycling
Tax reductions
Support to MFI for consumer credits
Import of Containers and commissioning to local retailers(thus implicitly subsidizing risk premium, import unit prices and pre-financing costs).
Provide Coupons to qualified technicians against, which they can buy qualified systems.

Possible indirect subsidies:

Teaser & Road Shows
Skills development for technicians, retailers
Support local assembly through technology transfer measures

Source: GTZ: FINANCING OF SOLAR HOME SYSTEMS IN DEVELOPING COUNTRIES, THE ROLE OF FINANCING IN THE DISSEMINATION PROCESS, Volume I: Main Report, Updated edition 2001, Eschborn, March 2001.

Approaches

A variety of approaches and strategies of direct and indirect subsidies for SHS are used at different levels:

1. Buy down grant: direct (sub-)subsidy for the primary system, reaches the end-user mostly indirectly through the dealer or a microfinance institution (MFI). In case of a service based approach, buy down grant and start-up subsidy are mixed (see below).

2. Start-up subsidy: a start-up financing for the set-up of a new company, launching new products and new services or the establishment of a rural sales and / or service system in new regions.

3. Refinancing: granting of long-term reduced interest loans for the initial investment (service model) or financing of SHS (sales model).

4. Tax and customs reduction or exemption for SHS components, installation and service.

5. Formation and training for the start-up of a new company, launching new products and services or the establishment of a rural sales and / or service system in new regions.

6. Development and dissemination of standards and quality labels and contemporaneous support of actors (companies, MFIs, NGOs, CBOs) in the introduction and application of standards and labels.

7. In case of service-oriented models, permanent cross-subsidisation of decentralised energy services with revenues from the central electricity sale or taxes.

In reality, various strategies are often combined.

SHS Dissemination and Subsidies within different Projects

Sales Models		Subsidies
Type	Country and Project Examples	1. Buy down grant	2. Start up subsidy	3. Refi-nancing	4. Tax/ Customs Exemption	5. Formation/ Training	6. Standards, Quality Label	7. Cross-subsidisation
1. Cash sales or dealer credit	EnDev Nicaragua	X			X
	EnDev Uganda	X			X	X
	GTZ Tansania		X	X	X	X
2. ‚One hand model Credit and service from one source	EnDev Bangladesh I	X	X	X	X		X
2. ‚One hand model Credit and service from one source	EnDev Bangladesh II	X	X	X	X		X
3. ‚Two hand model Credit and service separated	EnDev Honduras	X		X	X
3. ‚Two hand model Credit and service separated	Sri Lanka RERED	X	X	X		X	X

Fee for Service Models		Subsidies
Type	Country and Project Examples	1. Buy down grant	2. Start up subsidy	3. Refi-nancing	4.Tax/ Customs Exemption	5. Formation/ Training	6. Standards, Quality Label	7. Cross- subsidisation
1. Concession based regulated service EVU or RESCO	EnDev Senegal		X		X	X
1. Concession based regulated service EVU or RESCO	GTZ Pakistan		X		X	X	X	X
2. Non regulated service through RESCOs	Sunlabob Laos		X	X	?	X	?
3. Service through local NGO or cooperative	Solarstiftung Äthiopien		X			X		?
4. Management contract with RESCO	Sunlabob Laos		X		?	X	?

For further information on subsidies for SHS within EnDev, see the study conducted by SiNERGi for EnDev (in German).

@@ Line 11: / Line 11: @@
 <span lang="EN-GB"><font face="Arial">It helps to make the subsidy support [http://www.energypedia.info/index.php/Transparency_as_precondition_for_reforming_subsidies transparent]; in most countries today, it is impossible to indicate the contribution of subsidies in the supply of grid electricity. Most likely these subsidies are huge, compounded throughout the supply chain: the generation capacity is subsidized, the fuel is subsidized or detaxed, the expansion of the transmission and distribution network is subsidized, connection fees and tariffs are subsidized, etc. Revenues from consumers do not cover the full costs of generation, transmission, distribution and bill collection.</font></span>
-<span lang="EN-GB"><font face="Arial">In Rwanda</font></span>[[#_ftn1|<span class="MsoFootnoteReference"><span lang="EN-GB" style="font-size: 10pt;"><span style=""><span class="MsoFootnoteReference"><span lang="EN-GB" style="font-size: 10pt; font-family: 'arial','sans-serif';">[1]</span></span></span></span></span>]]<span lang="EN-GB"><font face="Arial"> the electricity Roll-out program intends to connect 250,000 new customers over the next few years and applies a beneficiary contribution of less than 10% of the real cost of connection. It is not phrased as a subsidy, but effectively it is; imagine what could have been done with this amount of money in support of finding modern energy solutions for all rural households! In Senegal</font></span>[[#_ftn2|<span class="MsoFootnoteReference"><span lang="EN-GB" style="font-size: 10pt;"><span style=""><span class="MsoFootnoteReference"><span lang="EN-GB" style="font-size: 10pt; font-family: 'arial','sans-serif';">[2]</span></span></span></span></span>]]<span lang="EN-GB"><font face="Arial"> several concessions have been awarded for increasing access to electricity; the average subsidy for a new connection in concession areas is about $350; alternatively, one could hand out for 5-7 free PV lanterns for the same amount.</font></span>
+<span lang="EN-GB"><font face="Arial">In Rwanda</font></span>[[#_ftn1|<span class="MsoFootnoteReference"><span lang="EN-GB" style="font-size: 10pt"><span><span class="MsoFootnoteReference"><span lang="EN-GB" style="font-size: 10pt; font-family: 'arial','sans-serif'">[1]</span></span></span></span></span>]]<span lang="EN-GB"><font face="Arial"> the electricity Roll-out program intends to connect 250,000 new customers over the next few years and applies a beneficiary contribution of less than 10% of the real cost of connection. It is not phrased as a subsidy, but effectively it is; imagine what could have been done with this amount of money in support of finding modern energy solutions for all rural households! In Senegal</font></span>[[#_ftn2|<span class="MsoFootnoteReference"><span lang="EN-GB" style="font-size: 10pt"><span><span class="MsoFootnoteReference"><span lang="EN-GB" style="font-size: 10pt; font-family: 'arial','sans-serif'">[2]</span></span></span></span></span>]]<span lang="EN-GB"><font face="Arial"> several concessions have been awarded for increasing access to electricity; the average subsidy for a new connection in concession areas is about $350; alternatively, one could hand out for 5-7 free PV lanterns for the same amount.</font></span>
 <span lang="EN-GB"><font face="Arial">Only a [http://www.energypedia.info/index.php/Transparency_as_precondition_for_reforming_subsidies transparent ]cost and price structure lays the basis for continued discussion and optimization of the support given, the more so since subsidies always remain the outcome of a political process. Although this process cannot or should not be stopped, the subsidies it awards should be made transparent so that beneficiaries and non-beneficiaries alike understand where the support went.</font></span>
 <span lang="EN-GB"><font face="Arial"></font></span><u>Source</u>: Robert vd Plas, Florian Ziegler in "EnDev Discussion Paper April 2010: Electricity Access for All - Illussions and Solutions"
-<div style=""><div style="padding: 0cm 0cm 4pt; border-width: medium medium 1pt; border-style: none none solid; border-color: -moz-use-text-color -moz-use-text-color rgb(79, 129, 189);">[[#_ftnref1|<span class="MsoFootnoteReference"><span lang="EN-US" style="font-size: 9pt; font-family: 'arial','sans-serif';"><span style=""><span class="MsoFootnoteReference"><span lang="EN-US" style="font-size: 9pt; font-family: 'arial','sans-serif';">[1]</span></span></span></span></span>]]<span lang="EN-US" style="font-size: 9pt; font-family: 'arial','sans-serif';"> Lighting Africa Country Study (work in progress)</span></div><div style="" id="ftn2">
+<div><div style="border-right: medium none; padding-right: 0cm; border-top: medium none; padding-left: 0cm; padding-bottom: 4pt; border-left: medium none; padding-top: 0cm; border-bottom: 1pt solid">[[#_ftnref1|<span class="MsoFootnoteReference"><span lang="EN-US" style="font-size: 9pt; font-family: 'arial','sans-serif'"><span><span class="MsoFootnoteReference"><span lang="EN-US" style="font-size: 9pt; font-family: 'arial','sans-serif'">[1]</span></span></span></span></span>]]<span lang="EN-US" style="font-size: 9pt; font-family: 'arial','sans-serif'"> Lighting Africa Country Study (work in progress)</span></div><div id="ftn2">
-[[#_ftnref2|<span class="MsoFootnoteReference"><span lang="EN-US" style="font-size: 9pt; font-family: 'arial','sans-serif';"><span style=""><span class="MsoFootnoteReference"><span lang="EN-US" style="font-size: 9pt; font-family: 'arial','sans-serif';">[2]</span></span></span></span></span>]]<span lang="EN-US" style="font-size: 9pt; font-family: 'arial','sans-serif';"> Lighting Africa Country Study (work in progress)</span>
+[[#_ftnref2|<span class="MsoFootnoteReference"><span lang="EN-US" style="font-size: 9pt; font-family: 'arial','sans-serif'"><span><span class="MsoFootnoteReference"><span lang="EN-US" style="font-size: 9pt; font-family: 'arial','sans-serif'">[2]</span></span></span></span></span>]]<span lang="EN-US" style="font-size: 9pt; font-family: 'arial','sans-serif'"> Lighting Africa Country Study (work in progress)</span>
 </div></div>
 <br>
@@ Line 25: / Line 25: @@
 ....
 <br>
 = Transparency  =
-<span style="font-size: 10pt; font-family: 'arial','sans-serif';">GTZ Position&nbsp;(Subsidies….A Think Piece; Fuel Price Index; Access for All – Illusions and Solutions; REN21 etc.): Mehr Transparenz über Kosten und Preise ist die Voraussetzung für eine vermehrte Diskussion/Partizipation und kann zum Abbau von Subventionen führen. Es gibt zwar viele Lobbygruppen, die ein Interesse an Intransparenz haben. Dennoch nutzt die Transparenz der Politik letztlich, weil sie damit zusätzliche Argumente für den Abbau von Subventionen erhält. </span><span style="font-size: 10pt; font-family: 'arial','sans-serif';">In DE wurde mit dem 20. Subventionsbericht (2003) ebenfalls eine Neuabgrenzung der Finanzhilfen vorgenommen, die den Regelungen der EU-Energiesteuerrichtlinie (RiLi 2003/96/EG) entspricht und für mehr Transparenz sorgt.</span>
+<span style="font-size: 10pt; font-family: 'arial','sans-serif'">GTZ Position&nbsp;(Subsidies….A Think Piece; Fuel Price Index; Access for All – Illusions and Solutions; REN21 etc.): Mehr Transparenz über Kosten und Preise ist die Voraussetzung für eine vermehrte Diskussion/Partizipation und kann zum Abbau von Subventionen führen. Es gibt zwar viele Lobbygruppen, die ein Interesse an Intransparenz haben. Dennoch nutzt die Transparenz der Politik letztlich, weil sie damit zusätzliche Argumente für den Abbau von Subventionen erhält. </span><span style="font-size: 10pt; font-family: 'arial','sans-serif'">In DE wurde mit dem 20. Subventionsbericht (2003) ebenfalls eine Neuabgrenzung der Finanzhilfen vorgenommen, die den Regelungen der EU-Energiesteuerrichtlinie (RiLi 2003/96/EG) entspricht und für mehr Transparenz sorgt.</span>
-<u>Siehe dazu auch</u>: '''<span lang="EN-GB" style="font-size: 10pt; font-family: 'arial','sans-serif';">GSI/UNEP, April 2010: “[http://www.globalsubsidies.org/files/assets/transparency_ffs.pdf Gaining Traction: The importance of transparency in accelerating the reform of fossil-fuel subsidies]”</span>'''
+<u>Siehe dazu auch</u>: '''<span lang="EN-GB" style="font-size: 10pt; font-family: 'arial','sans-serif'">GSI/UNEP, April 2010: “[http://www.globalsubsidies.org/files/assets/transparency_ffs.pdf Gaining Traction: The importance of transparency in accelerating the reform of fossil-fuel subsidies]”</span>'''
 Aus dieser Studie:
@@ Line 37: / Line 37: @@
 '''Transparency as a foundation for reform'''
 <br>
 <u>Transparency can influence reform in at least four ways (Hale, 2008):</u>
@@ Line 57: / Line 57: @@
 their own standards and norms.
 <br>
 In considering the extent to which improving transparency could assist reform, the key consideration appears
@@ Line 83: / Line 83: @@
 Read more:[http://www.globalsubsidies.org/files/assets/transparency_ffs.pdf http://www.globalsubsidies.org/files/assets/transparency_ffs.pdf]
 <br>
-'''<span lang="EN-US" style="font-family: 'arial','sans-serif';">Global Subsidies Initiative (GSI) - "The Effects of Fossil-Fuel Subsidy Reform: A review of modelling and empirical studies"</span>'''<span lang="EN-US" style="font-family: 'arial','sans-serif';"> The Global Subsidies Initiative (GSI) releases the publication of Jennifer Ellis’ paper “The Effects of Fossil-Fuel Subsidy Reform: A review of modelling and empirical studies.” This is the second paper to be published in the series Untold Billions: Fossil-fuel subsidies, their impacts and the path to reform.&nbsp;Subsidies are powerful instruments and when granted to fossil fuels, which are at the heart of all modern economies, subsidies have impacts throughout the economy, society and environment. Understanding the complex trade-offs between the different impacts of subsidy reform is a challenge for any government considering phasing out fossil-fuel subsidies.&nbsp;In this report, Jennifer Ellis provides a detailed literature review, focusing on the six modeling studies in the last 20 years that have attempted to analyze global impacts of subsidies for all fuels.&nbsp; The studies mostly considered effects on greenhouse gas emissions and gross domestic product, but very little of the work has considered other environmental impacts or social impacts.&nbsp; The paper highlights a number of areas where further research should be undertaken but concludes that there is already enough evidence to demonstrate the significant environmental and economic benefits of phasing out fossil-fuel subsidies, and recommends that policy-makers do not delay in beginning the reform process.&lt;o:p&gt;&lt;/o:p&gt;</span>
+'''<span lang="EN-US" style="font-family: 'arial','sans-serif'">Global Subsidies Initiative (GSI) - "The Effects of Fossil-Fuel Subsidy Reform: A review of modelling and empirical studies"</span>'''<span lang="EN-US" style="font-family: 'arial','sans-serif'"> The Global Subsidies Initiative (GSI) releases the publication of Jennifer Ellis’ paper “The Effects of Fossil-Fuel Subsidy Reform: A review of modelling and empirical studies.” This is the second paper to be published in the series Untold Billions: Fossil-fuel subsidies, their impacts and the path to reform.&nbsp;Subsidies are powerful instruments and when granted to fossil fuels, which are at the heart of all modern economies, subsidies have impacts throughout the economy, society and environment. Understanding the complex trade-offs between the different impacts of subsidy reform is a challenge for any government considering phasing out fossil-fuel subsidies.&nbsp;In this report, Jennifer Ellis provides a detailed literature review, focusing on the six modeling studies in the last 20 years that have attempted to analyze global impacts of subsidies for all fuels.&nbsp; The studies mostly considered effects on greenhouse gas emissions and gross domestic product, but very little of the work has considered other environmental impacts or social impacts.&nbsp; The paper highlights a number of areas where further research should be undertaken but concludes that there is already enough evidence to demonstrate the significant environmental and economic benefits of phasing out fossil-fuel subsidies, and recommends that policy-makers do not delay in beginning the reform process.&lt;o:p&gt;&lt;/o:p&gt;</span>
-'''<span lang="EN-US" style="font-family: 'arial','sans-serif';">Download at</span>'''<span lang="EN-US" style="font-family: 'arial','sans-serif';">: </span><span style="font-family: 'arial','sans-serif';">[http://www.globalsubsidies.org/en/research/economic-social-and-environmental-effects <span lang="EN-US" style="">http://www.globalsubsidies.org/en/research/economic-social-and-environmental-effects</span>] </span><span lang="EN-US" style="font-family: 'arial','sans-serif';">.&lt;o:p&gt;&lt;/o:p&gt;</span>
+'''<span lang="EN-US" style="font-family: 'arial','sans-serif'">Download at</span>'''<span lang="EN-US" style="font-family: 'arial','sans-serif'">: </span><span style="font-family: 'arial','sans-serif'">[http://www.globalsubsidies.org/en/research/economic-social-and-environmental-effects <span lang="EN-US">http://www.globalsubsidies.org/en/research/economic-social-and-environmental-effects</span>] </span><span lang="EN-US" style="font-family: 'arial','sans-serif'">.&lt;o:p&gt;&lt;/o:p&gt;</span>
-<span lang="EN-US" style="font-family: 'arial','sans-serif';">'''EARTH TRACK: EIA Energy Subsidy Estimates: A Review of Assumptions and Omissions'''&nbsp; &lt;o:p&gt;&lt;/o:p&gt;</span>
+<span lang="EN-US" style="font-family: 'arial','sans-serif'">'''EARTH TRACK: EIA Energy Subsidy Estimates: A Review of Assumptions and Omissions'''&nbsp; &lt;o:p&gt;&lt;/o:p&gt;</span>
-<span lang="EN-US" style="font-family: 'arial','sans-serif';">This Review provides a detailed look at gaps in federal tracking of energy subsidies in the United States. In addition to evaluating the research approach used by the US Energy Information Administration (EIA), the Review assesses how key assumptions and omissions in EIA's work resulted in a substantial undercounting of federal energy subsidies and an inaccurate portrayal of subsidy distribution across fuels.&nbsp; EIA estimates are also placed in the context of other assessments of domestic energy subsidies conducted over the past thirty years.&lt;o:p&gt;&lt;/o:p&gt;</span>
+<span lang="EN-US" style="font-family: 'arial','sans-serif'">This Review provides a detailed look at gaps in federal tracking of energy subsidies in the United States. In addition to evaluating the research approach used by the US Energy Information Administration (EIA), the Review assesses how key assumptions and omissions in EIA's work resulted in a substantial undercounting of federal energy subsidies and an inaccurate portrayal of subsidy distribution across fuels.&nbsp; EIA estimates are also placed in the context of other assessments of domestic energy subsidies conducted over the past thirty years.&lt;o:p&gt;&lt;/o:p&gt;</span>
-'''<span lang="EN-US" style="font-family: 'arial','sans-serif';">Read more:</span>'''<span lang="EN-US" style="font-family: 'arial','sans-serif';"> [http://earthtrack.net/files/uploaded_files/EIA%20subsidy%20review%20final_17Mar10.pdf http://earthtrack.net/files/uploaded_files/EIA%20subsidy%20review%20final_17Mar10.pdf] &lt;o:p&gt;&lt;/o:p&gt;</span>
+'''<span lang="EN-US" style="font-family: 'arial','sans-serif'">Read more:</span>'''<span lang="EN-US" style="font-family: 'arial','sans-serif'"> [http://earthtrack.net/files/uploaded_files/EIA%20subsidy%20review%20final_17Mar10.pdf http://earthtrack.net/files/uploaded_files/EIA%20subsidy%20review%20final_17Mar10.pdf] &lt;o:p&gt;&lt;/o:p&gt;</span>
-<span lang="EN-US" style="font-family: 'arial','sans-serif';">'''IMF Note - Petroleum Product Subsidies: Costly, Inequitable, and Rising''' Petroleum product subsidies have again started to rise with the rebound in international prices. This note reviews recent developments in subsidy levels and argues that it is necessary to reform the policy framework for setting petroleum product prices in order to reduce the fiscal burden of these subsidies and to address climate change. In 2003, global consumer subsidies for petroleum products totaled nearly $60 billion. '''Read more:''' </span><span style="font-family: 'arial','sans-serif';">[http://www.imf.org/external/pubs/ft/spn/2010/spn1005.pdf <span lang="EN-US" style="">http://www.imf.org/external/pubs/ft/spn/2010/spn1005.pdf</span>]&lt;o:p&gt;&lt;/o:p&gt;</span>
+<span lang="EN-US" style="font-family: 'arial','sans-serif'">'''IMF Note - Petroleum Product Subsidies: Costly, Inequitable, and Rising''' Petroleum product subsidies have again started to rise with the rebound in international prices. This note reviews recent developments in subsidy levels and argues that it is necessary to reform the policy framework for setting petroleum product prices in order to reduce the fiscal burden of these subsidies and to address climate change. In 2003, global consumer subsidies for petroleum products totaled nearly $60 billion. '''Read more:''' </span><span style="font-family: 'arial','sans-serif'">[http://www.imf.org/external/pubs/ft/spn/2010/spn1005.pdf <span lang="EN-US">http://www.imf.org/external/pubs/ft/spn/2010/spn1005.pdf</span>]&lt;o:p&gt;&lt;/o:p&gt;</span>
 &nbsp;
@@ Line 124: / Line 124: @@
 <br>Source: [http://www.energypedia.info/index.php/file:Gtz_financing_of_shs_in_dc_1.pdf GTZ: FINANCING OF SOLAR HOME SYSTEMS IN DEVELOPING COUNTRIES, THE ROLE OF FINANCING IN THE DISSEMINATION PROCESS, Volume I: Main Report, Updated edition 2001, Eschborn, March 2001.]
 <br>
 == Approaches  ==
@@ Line 146: / Line 146: @@
 In reality, various strategies are often combined.
 <br>
 == SHS Dissemination and Subsidies within different Projects  ==
-{| width="90%" cellspacing="0" cellpadding="2" border="2"
+{| cellspacing="0" cellpadding="2" width="90%" border="2"
 |-
-| bgcolor="#ffff99" align="center" | '''Sales Models'''&nbsp;
+| align="center" bgcolor="#ffff99" | '''Sales Models'''&nbsp;
-| bgcolor="#ffff99" align="center" | &nbsp;
+| align="center" bgcolor="#ffff99" | &nbsp;
-| bgcolor="#ffff99" align="center" colspan="7" | '''Subsidies'''
+| align="center" bgcolor="#ffff99" colspan="7" | '''Subsidies'''
 |-
-| bgcolor="#ffff99" align="center" | '''Type'''
+| align="center" bgcolor="#ffff99" | '''Type'''
-| bgcolor="#ffff99" align="center" | '''Country and Project Examples'''
+| align="center" bgcolor="#ffff99" | '''Country and Project Examples'''
 | bgcolor="#ffff99" | '''1. Buy down grant'''
 | bgcolor="#ffff99" | '''2. Start up subsidy'''
@@ Line 168: / Line 168: @@
 | bgcolor="#ffff99" rowspan="3" | '''1. Cash sales or<br>dealer credit'''
 | '''EnDev Nicaragua'''
-| bgcolor="#ccffcc" align="center" | '''X'''
+| align="center" bgcolor="#ccffcc" | '''X'''
 | align="center" | &nbsp;
 | align="center" | &nbsp;
-| bgcolor="#ccffcc" align="center" | '''X'''
+| align="center" bgcolor="#ccffcc" | '''X'''
 | align="center" | &nbsp;
 | align="center" | &nbsp;
@@ Line 177: / Line 177: @@
 |-
 | '''EnDev Uganda'''
-| bgcolor="#ccffcc" align="center" | '''X'''
+| align="center" bgcolor="#ccffcc" | '''X'''
 | align="center" | &nbsp;
 | align="center" | &nbsp;
-| bgcolor="#ccffcc" align="center" | '''X'''
+| align="center" bgcolor="#ccffcc" | '''X'''
-| bgcolor="#ccffcc" align="center" | '''X'''
+| align="center" bgcolor="#ccffcc" | '''X'''
 | align="center" | &nbsp;
 | align="center" | &nbsp;
@@ Line 187: / Line 187: @@
 | '''GTZ Tansania'''
 | align="center" | &nbsp;
-| bgcolor="#ccffcc" align="center" | '''X'''
+| align="center" bgcolor="#ccffcc" | '''X'''
-| bgcolor="#ccffcc" align="center" | '''X'''
+| align="center" bgcolor="#ccffcc" | '''X'''
-| bgcolor="#ccffcc" align="center" | '''X'''
+| align="center" bgcolor="#ccffcc" | '''X'''
-| bgcolor="#ccffcc" align="center" | '''X'''
+| align="center" bgcolor="#ccffcc" | '''X'''
 | align="center" | &nbsp;
 | align="center" | &nbsp;
@@ Line 196: / Line 196: @@
 | bgcolor="#ffff99" rowspan="2" | '''2. ‚One hand model<br>Credit and service from one source'''
 | '''EnDev Bangladesh I'''
-| bgcolor="#ccffcc" align="center" | '''X'''
+| align="center" bgcolor="#ccffcc" | '''X'''
-| bgcolor="#ccffcc" align="center" | '''X'''
+| align="center" bgcolor="#ccffcc" | '''X'''
-| bgcolor="#ccffcc" align="center" | '''X'''
+| align="center" bgcolor="#ccffcc" | '''X'''
-| bgcolor="#ccffcc" align="center" | '''X'''
+| align="center" bgcolor="#ccffcc" | '''X'''
 | align="center" | &nbsp;
-| bgcolor="#ccffcc" align="center" | '''X'''
+| align="center" bgcolor="#ccffcc" | '''X'''
 | align="center" | &nbsp;
 |-
 | '''EnDev Bangladesh II'''
-| bgcolor="#ccffcc" align="center" | '''X'''
+| align="center" bgcolor="#ccffcc" | '''X'''
-| bgcolor="#ccffcc" align="center" | '''X'''
+| align="center" bgcolor="#ccffcc" | '''X'''
-| bgcolor="#ccffcc" align="center" | '''X'''
+| align="center" bgcolor="#ccffcc" | '''X'''
-| bgcolor="#ccffcc" align="center" | '''X'''
+| align="center" bgcolor="#ccffcc" | '''X'''
 | align="center" | &nbsp;
-| bgcolor="#ccffcc" align="center" | '''X'''
+| align="center" bgcolor="#ccffcc" | '''X'''
 | align="center" | &nbsp;
 |-
 | bgcolor="#ffff99" rowspan="2" | '''3. ‚Two hand model<br>Credit and service&nbsp;separated'''
 | '''EnDev Honduras'''
-| bgcolor="#ccffcc" align="center" | '''X'''
+| align="center" bgcolor="#ccffcc" | '''X'''
 | align="center" | &nbsp;
-| bgcolor="#ccffcc" align="center" | '''X'''
+| align="center" bgcolor="#ccffcc" | '''X'''
-| bgcolor="#ccffcc" align="center" | '''X'''
+| align="center" bgcolor="#ccffcc" | '''X'''
 | align="center" | &nbsp;
 | align="center" | &nbsp;
@@ Line 224: / Line 224: @@
 |-
 | '''Sri Lanka RERED'''
-| bgcolor="#ccffcc" align="center" | '''X'''
+| align="center" bgcolor="#ccffcc" | '''X'''
-| bgcolor="#ccffcc" align="center" | '''X'''
+| align="center" bgcolor="#ccffcc" | '''X'''
-| bgcolor="#ccffcc" align="center" | '''X'''
+| align="center" bgcolor="#ccffcc" | '''X'''
 | align="center" | &nbsp;
-| bgcolor="#ccffcc" align="center" | '''X'''
+| align="center" bgcolor="#ccffcc" | '''X'''
-| bgcolor="#ccffcc" align="center" | '''X'''
+| align="center" bgcolor="#ccffcc" | '''X'''
 | align="center" | &nbsp;
 |-
@@ Line 242: / Line 242: @@
 | align="center" | &nbsp;
 |-
-| bgcolor="#ccffff" align="center" | '''Fee for Service Models'''
+| align="center" bgcolor="#ccffff" | '''Fee for Service Models'''
 | bgcolor="#ccffff" | &nbsp;
-| bgcolor="#ccffff" align="center" colspan="7" | '''Subsidies'''
+| align="center" bgcolor="#ccffff" colspan="7" | '''Subsidies'''
 |-
-| bgcolor="#ccffff" align="center" | '''Type'''
+| align="center" bgcolor="#ccffff" | '''Type'''
-| bgcolor="#ccffff" align="center" | '''Country and Project Examples'''
+| align="center" bgcolor="#ccffff" | '''Country and Project Examples'''
 | bgcolor="#ccffff" | '''1. Buy down grant'''
 | bgcolor="#ccffff" | '''2. Start up subsidy'''
@@ Line 308: / Line 308: @@
 <br>For&nbsp;further information on subsidies for SHS within EnDev, see the&nbsp;[[Subsidies for Solar Home Systems|study conducted by SiNERGi]] for EnDev (in German).
 <br>
 <br>
- [[Solar Main Page|⇒ Back to Solar Section]]
@@ Line 319: / Line 317: @@
 #'''New study&nbsp;on energy access subsidies conducted by EnDev and SV PPI available.''' [http://energypedia.info/extensions/FCKeditor/fckeditor/editor/GTZ%20study <font color="#002bb8">Link to abstract, download and discussion group.</font>]
 #[http://energypedia.info/extensions/FCKeditor/fckeditor/editor/Overview%20Subsidies%20EnDev <font color="#002bb8">EnDev subsidies Overview</font>]
-#Detailed article on [[Subsidies_for_Solar_Home_Systems|<font color="#002bb8">Subsidies for Solar Home Systems</font>]] in various countries
+#Detailed article on [[Subsidies for Solar Home Systems|<font color="#002bb8">Subsidies for Solar Home Systems</font>]] in various countries
 #Mirco Gaul's (SiNERGi) study on [http://www.energypedia.info/index.php/File:Stove_subsidies-gtz-2009.pdf <font color="#002bb8">''Subsidy schemes for the dissemination of improved stoves''</font>]gives a brief overview of the current state of approaches and strategies for the promotion of improved stoves as implemented by EnDev projects in Bolivia, Burkina Faso, Ethiopia and Mali
 #paper by Kenneth P. Thomas: [http://www.iisd.org/publications/pub.aspx?pno=1069 <font color="#002bb8">Assessing Sustainable Development Impacts of Investment Incentives: A Checklist</font>], IISD, 2009

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Introduction

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Further Reading

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Revision as of 07:56, 12 July 2011

Contents

Introduction

Typology

Transparency

Subsidies for Solar Home System Promotion

Approaches

SHS Dissemination and Subsidies within different Projects

Further Reading