3 ms·
the way it works is that oil is taxed let's say at 100% markup, and then temporarily the government decreases it to 80%, creating a 20% subsidy so the report w
by urgentcorrect 5y ago
the way it works is that oil is taxed let's say at 100% markup, and then temporarily the government decreases it to 80%, creating a 20% subsidy
so the report will claim that oil is heavily subsidised. Ridiculous
- Retric 5y agoSubsidies are a measure of how distorted the market is. If you exempt something from sales tax that would otherwise apply it’s a subsidy because it’s cheaper relative to the rest of the market. For example, excluding the trucking industry from fuel taxes is a fossil fuel subsidy because fuel taxes are used to pay for roads. The net effect is an increase in the number of trucks vs rail as rail is forced to pay for it’s own infrastructure while trucking would not be. The same applies to EV’s vs ICE as EV’s avoid paying for roads.