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A case study of China's policy to eliminate harmful fossil fuel
subsidies
Source: NRDC
Between 1990 and 1997, China dramatically reduced its annual fossil
fuel subsidies from $24.5 billion to $10 billion. Because of their
energy policy priority to decrease coal use, China cut coal subsidies
40% since 1990. Also, petroleum subsidies fell from 55% in 1990
to 2% in 1995. The state mandated 25,000 coal mines to close and
also partially lifted price controls.
By minimizing subsidies, China's coal consumption declined by 411
million short tons since 1996. These reforms have also greatly improved
China's energy efficiency, as energy intensity decreased by 30%
since 1985. China's economy continues to flourish and grow while
their use of renewables increases, fossil fuel subsidies decreased
by half and carbon dioxide emissions were cut by 17% since 1997.
In order to minimize job losses from the smaller coal industry,
China is trying to place solar cell manufacturing sites near the
old coal mines.
Resources:
Natural Resources Defense Council:
1st
report
2nd
report confirming analysis
US
Department of Energy's Statistics |
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