Green energy subsidies reduce imbalance

In addition to helping develop new technologies subsidies, for green energy are helping offset the fact non-renewable energy is effectively subsidized, according to an article by a Harvard political economy professor, Dani Rodrik.

It is widely recognized that the price of oil and gas does not reflect the real costs. An International Monetary Fund report from January 2013 estimated that in 2011 direct and indirect subsidies for petroleum products, natural gas, electricity and coal were $1.9 trillion.

Professor Rodrik also argues that governments that are open about the fact they are implementing an industrial policy are more likely to succeed than those trying to hide it.