Canadian economy heading for recession
- Thread starter mentalfloss
- Start date
sub·si·dy
ˈsəbsədē/
noun
noun: subsidy; plural noun: subsidies
1.
a sum of money granted by the government or a public body to assist an industry or business so that the price of a commodity or service may remain low or competitive.
"a farm subsidy"
a sum of money granted to support an arts organization or other undertaking held to be in the public interest.
a grant or contribution of money.
synonyms: grant, allowance, endowment, contribution, donation, bursary, handout; More
2.
ˈsəbsədē/
noun
noun: subsidy; plural noun: subsidies
1.
a sum of money granted by the government or a public body to assist an industry or business so that the price of a commodity or service may remain low or competitive.
"a farm subsidy"
a sum of money granted to support an arts organization or other undertaking held to be in the public interest.
a grant or contribution of money.
synonyms: grant, allowance, endowment, contribution, donation, bursary, handout; More
2.
They use the price gap approach - which is the common methodology for consumption subsides.
The Price Gap Approach
The IEA estimates subsidies to fossil fuels that are consumed directly by end-users or consumed as inputs to electricity generation. The price-gap approach, the most commonly applied methodology for quantifying consumption subsidies, is used for this analysis. It compares average end-user prices paid by consumers with reference prices that correspond to the full cost of supply. The price gap is the amount by which an end-use price falls short of the reference price and its existence indicates the presence of a subsidy. In a given economy..
IEA - Methodology for Calculating Subsidies
So what methodology does the IMF use?
Subsidies for petroleum products are calculated for 176 countries using the price gap approach drawing on data compiled by IMF staff, the OECD, and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) for 2000–2011. Consumer subsidies are estimated for gasoline, diesel, and kerosene. Producer subsidies to refineries to cover inefficient operations are not estimated due to the lack of data. Therefore, our estimated petroleum product subsidies capture only consumer subsidies and should be seen as a lower bound. See Appendix I for details.
http://www.iea.org/media/weowebsite/factsheets/factsheets.pdf
http://www.imf.org/external/np/pp/eng/2013/012813.pdf
New Report Highlights Fossil-Fuel Exploration Subsidies in G7 Countries | Global Subsidies Initiative
The Price Gap Approach
The IEA estimates subsidies to fossil fuels that are consumed directly by end-users or consumed as inputs to electricity generation. The price-gap approach, the most commonly applied methodology for quantifying consumption subsidies, is used for this analysis. It compares average end-user prices paid by consumers with reference prices that correspond to the full cost of supply. The price gap is the amount by which an end-use price falls short of the reference price and its existence indicates the presence of a subsidy. In a given economy..
IEA - Methodology for Calculating Subsidies
So what methodology does the IMF use?
Subsidies for petroleum products are calculated for 176 countries using the price gap approach drawing on data compiled by IMF staff, the OECD, and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) for 2000–2011. Consumer subsidies are estimated for gasoline, diesel, and kerosene. Producer subsidies to refineries to cover inefficient operations are not estimated due to the lack of data. Therefore, our estimated petroleum product subsidies capture only consumer subsidies and should be seen as a lower bound. See Appendix I for details.
http://www.iea.org/media/weowebsite/factsheets/factsheets.pdf
http://www.imf.org/external/np/pp/eng/2013/012813.pdf
New Report Highlights Fossil-Fuel Exploration Subsidies in G7 Countries | Global Subsidies Initiative
sub·si·dy
ˈsəbsədē/
noun
noun: subsidy; plural noun: subsidies
1.
a sum of money granted by the government or a public body to assist an industry or business so that the price of a commodity or service may remain low or competitive.
"a farm subsidy"
a sum of money granted to support an arts organization or other undertaking held to be in the public interest.
a grant or contribution of money.
synonyms: grant, allowance, endowment, contribution, donation, bursary, handout; More
2.
What is the sum of cash?
Energy subsidies are measures that keep prices for consumers below market levels or for producers above market levels, or reduce costs for consumers and producers. Energy subsidies may be direct cash transfers to producers, consumers, or related bodies, as well as indirect support mechanisms, such as tax exemptions and rebates, price controls, trade restrictions, and limits on market access. They may also include energy conservation subsidies.
The development of today's major modern energy industries have all relied on substantial subsidy support.
Fossil fuel subsidies reached $90 billion in the OECD and over $500 billion globally in 2011.[1] Renewable energy subsidies reached $88 billion in 2011.[2] According to Fatih Birol, Chief Economist at the International Energy Agency without a phasing out of fossil fuel subsidies, we will not reach our climate targets.[3] The IMF estimates that for 2015 the economic cost of energy subsidies worldwide will amount to US$5.3 trillion, or US$10 million every minute.[4] This is not to be confused with actual amount of subsidies which are projected to amount to around US$333 billion for 2015. [5] This would be a decrease from 2014 which reflects the slump in oil prices rather than policy changes.
https://en.m.wikipedia.org/wiki/Energy_subsidies
This page has some issues
The examples and perspective in this article deal primarily with the United States and do not represent a worldwide view of the subject. (September 2013)
Generally when it suits your agenda.
But I know what he's trying to convey. It's a necessary evil though.
It references the OECD and the definition itself reflects the price gap approach.
I wouldn't dismiss that information because of a disclaimer.
In your definition that actually proves my point that it is not only cash.
I wouldn't dismiss that information because of a disclaimer.
In your definition that actually proves my point that it is not only cash.
Because it says 'money' not cash.
The definition of money includes assets, property or other resources.