the impact of energy subsidies on the environment is complex, and results from the impacts that
subsidies have on energy choices and consumption levels.
there are instances where energy subsidies could create environmental benefits. Poor households
in some regions still rely on firewood for fuel. subsidizing lPG permits greater access of lPG by poor households, which helps curb deforestation and potentially offsets the emissions from fuel combustion
[Iea], organization of the Petroleum exporting countries [oPec], organisation for economic
co-operation and development [oecd], & World bank, 2010). lPG burns more cleanly than wood
and can therefore reduce serious respiratory illnesses associated with the burning of biomass,
particularly indoors