Subsidies - Revision history

Ahmed El-Sherbini at 11:07, 12 February 2019

2019-02-12T11:07:12Z

Johanna von Behaim: /* Further Information */

2016-07-05T14:16:17Z

Further Information

Lisafeldmann: /* Transparency */

2015-06-02T08:10:51Z

Transparency

Ranisha: /* Further Information */

2015-04-01T14:41:36Z

Further Information

Ranisha at 10:49, 5 November 2014

2014-11-05T10:49:09Z

Ranisha: /* Subsidies for Solar Home System Promotion */

2014-11-05T10:09:11Z

Subsidies for Solar Home System Promotion

Ranisha: /* Transparency */

2014-08-15T13:34:48Z

Transparency

Ranisha: /* Transparency */

2014-08-15T13:32:03Z

Transparency

Ranisha at 13:30, 15 August 2014

2014-08-15T13:30:04Z

Ranisha at 13:19, 15 August 2014

2014-08-15T13:19:55Z

@@ Line 1: / Line 1: @@
 [[Portal:Financing and Funding|► Back to Financing and Funding Portal]]
@@ Line 38: / Line 39: @@
 <br/>
 = Transparency =
@@ Line 47: / Line 46: @@
 In Germany the financial support was put in a new order with the 20th report on subsidies (2003). This report corresponds to the EU-Energiesteuerrichtlinie (RiLi 2003/96/EG), which shall achieve more transparency.<
-For further information please refer to: '''<span lang="EN-GB" style="font-size: 10pt;  font-family: 'arial','sans-serif'">GSI/UNEP, April 2010: [http://www.globalsubsidies.org/files/assets/transparency_ffs.pdf Gaining Traction: The importance of transparency in accelerating the reform of fossil-fuel subsidies]</span>'''
+For further information please refer to: '''<span lang="EN-GB" style="font-size: 10pt; font-family: 'arial','sans-serif'">GSI/UNEP, April 2010: [http://www.globalsubsidies.org/files/assets/transparency_ffs.pdf Gaining Traction: The importance of transparency in accelerating the reform of fossil-fuel subsidies]</span>'''
 <br/>
@@ Line 86: / Line 85: @@
 <br/>
 = Subsidies for Solar Home System Promotion =
@@ Line 97: / Line 95: @@
 Possible direct subsidies for solar systems:
 *Direct price subsidies of systems that meet minimum specs and or providers who guarantee local hubs for replacements and repair.
 *Direct subsidies to compensate quality investments, warranty and recycling
@@ Line 105: / Line 104: @@
 Possible indirect subsidies:
 *Teaser & Road Shows
 *Skills development for technicians, retailers
 *Support local assembly through technology transfer measures
-<br/><u>Source</u>: [[:File:Financing_of_Solar_Home_Systems_in_Developing_Countries.pdf|GTZ: FINANCING OF SOLAR HOME SYSTEMS IN DEVELOPING COUNTRIES, THE ROLE OF FINANCING IN THE DISSEMINATION PROCESS, Volume I: Main Report, Updated edition 2001, Eschborn, March 2001.]]
+<br/><u>Source</u>: [[:File:Financing of Solar Home Systems in Developing Countries.pdf|GTZ: FINANCING OF SOLAR HOME SYSTEMS IN DEVELOPING COUNTRIES, THE ROLE OF FINANCING IN THE DISSEMINATION PROCESS, Volume I: Main Report, Updated edition 2001, Eschborn, March 2001.]]
 <br/>
@@ Line 297: / Line 297: @@
 <br/>
-As the tables show the sales models prevail; subsidy rates range between 0% and 60 %. The target group and the availability of affordable loans for the target group are obviously critical drivers, besides the size of the system.<br/>Fee for service models have higher subsidy rates (70-100%). This may be caused by:
+As the tables show the sales models prevail; subsidy rates range between 0% and 60&nbsp;%. The target group and the availability of affordable loans for the target group are obviously critical drivers, besides the size of the system.<br/>Fee for service models have higher subsidy rates (70-100%). This may be caused by:
 . aiming for a high market penetration (Poor and dispersed households are more involved, than in the sales models)<br/>2. establishing and substituting a aftersale service.
@@ Line 381: / Line 381: @@
 | '''Roshan Pakistan'''
 | style="text-align: center;" | Concesion
-| style="text-align: center;" | ?? (40 Wp)
+| style="text-align: center;" | &nbsp;?? (40 Wp)
 | style="text-align: center;" | 4,10 Anschluss, 1,76 pro Monat
 | style="text-align: center;" | 100%
@@ Line 393: / Line 393: @@
 | '''Sunlabob Laos'''
 | style="text-align: center;" | Service RESCO
-| style="text-align: center;" | ?? (20 Wp)
+| style="text-align: center;" | &nbsp;?? (20 Wp)
-| style="text-align: center;" | ?? Anschluss, 2,5 pro Monat
+| style="text-align: center;" | &nbsp;?? Anschluss, 2,5 pro Monat
 | style="text-align: center;" | 0%<sup>3</sup>
 |-
@@ Line 415: / Line 415: @@
 <br/>
 = Subsidies for Improved Cookstoves =
-[[Financing_Mechanisms_for_Cookstove_Dissemination#Purchasing_Improved_Cookstoves_Through_Subsidies|► Read more here]]
+[[Financing Mechanisms for Cookstove Dissemination#Purchasing Improved Cookstoves Through Subsidies|► Read more here]]
 <br/>
 = Further Information =
@@ Line 447: / Line 445: @@
 #Reiche K., Covarrubias A., Martinot E.: Expanding Electricity Access to Remote Areas: Off-Grid Rural Electrification in Developing Countries, WorldPower (2000) 52-60
 #World Bank Renewable Energy Toolkit: [http://go.worldbank.org/Y20OGSRGH0 http://go.worldbank.org/Y20OGSRGH0]
-#[[Examples_of_Legal_Texts_and_Regulations_to_Lift_Import_Duties_for_PV_Products|Examples of Legal Texts and Regulations to Lift Import Duties for PV Products]]<br/>
+#[[Examples of Legal Texts and Regulations to Lift Import Duties for PV Products|Examples of Legal Texts and Regulations to Lift Import Duties for PV Products]]<br/>
 <br/>
 = References =
@@ Line 456: / Line 454: @@
 <references /><br/>
 [[Category:Solar_Home_Systems_(SHS)]]

@@ Line 422: / Line 422: @@
 <br/>
 = Further Information =
 #'''New study on energy access subsidies conducted by EnDev and SV PPI available.''' [http://www.giz.de/expertise/downloads/gtz2009-en-energy-subsidies-a-think-piece.pdf Energy Subsidies: Why, When and How?]
-#Energypedia-article about [[Financing_Models_for_Solar_Home_Systems|Financing Models for Solar Home Systems]]
+#Energypedia-article about [[Financing Models for Solar Home Systems|Financing Models for Solar Home Systems]]
 #Mirco Gaul's (SiNERGi) study on <font color="#002bb8">''Subsidy schemes for the dissemination of improved stoves''</font>gives a brief overview of the current state of approaches and strategies for the promotion of improved stoves as implemented by EnDev projects in Bolivia, Burkina Faso, Ethiopia and Mali
 #paper by Kenneth P. Thomas: [http://www.iisd.org/publications/pub.aspx?pno=1069 Assessing Sustainable Development Impacts of Investment Incentives: A Checklist], IISD, 2009
@@ Line 446: / Line 447: @@
 #Reiche K., Covarrubias A., Martinot E.: Expanding Electricity Access to Remote Areas: Off-Grid Rural Electrification in Developing Countries, WorldPower (2000) 52-60
 #World Bank Renewable Energy Toolkit: [http://go.worldbank.org/Y20OGSRGH0 http://go.worldbank.org/Y20OGSRGH0]
 <br/>

@@ Line 38: / Line 38: @@
 <br/>
 = Transparency =
-GTZ Position (Subsidies….A Think Piece; Fuel Price Index; Access for All – Illusions and Solutions; REN21 etc.): More transparency of cots and prices is a precondition for discussion and participation. Finally, this can lead to a reduction of subsidies. This is the reason why the benefit of transparency is finally bigger for the politics, despite there may be lobbies that have an interest in intransparency.
+GTZ Position (Subsidies….A Think Piece; Fuel Price Index; Access for All – Illusions and Solutions; REN21 etc.): More transparency of costs and prices is a precondition for discussion and participation. Finally, this can lead to a reduction of subsidies. This is the reason why the benefit of transparency is finally bigger for the politics, despite there may be lobbies that have an interest in intransparency.
 In Germany the financial support was put in a new order with the 20th report on subsidies (2003). This report corresponds to the EU-Energiesteuerrichtlinie (RiLi 2003/96/EG), which shall achieve more transparency.<
-For further information please refer to: '''<span style="font-size: 10pt; font-family: 'arial','sans-serif'" lang="EN-GB">GSI/UNEP, April 2010: [http://www.globalsubsidies.org/files/assets/transparency_ffs.pdf Gaining Traction: The importance of transparency in accelerating the reform of fossil-fuel subsidies]</span>'''
+For further information please refer to: '''<span lang="EN-GB" style="font-size: 10pt;  font-family: 'arial','sans-serif'">GSI/UNEP, April 2010: [http://www.globalsubsidies.org/files/assets/transparency_ffs.pdf Gaining Traction: The importance of transparency in accelerating the reform of fossil-fuel subsidies]</span>'''
 <br/>
@@ Line 66: / Line 67: @@
 In considering the extent to which improving transparency could assist reform, the key consideration appears to be one of ensuring its relevance. For transparency to be useful, information users and providers must desire disclosure of the information and see how such transparency can help meet their objectives. Improved information about fossil-fuel subsidies, in particular, can help governments meet their reform objectives. At the simplest level, information about the subsidy and its effects facilitates an assessment of its costs and benefits and, therefore, of the implications of reform. Making this information publicly available increases awareness of the effects of existing policies and allows public input to decision-making (Wolfe and Helmer, 2007). Many governments understand the economic, social and environmental problems created by subsidies, but are under political pressure to maintain them. Transparency can expose those winners and losers created by subsidies and therefore help to broaden support for reform (Victor, 2009).... Read more: [http://www.globalsubsidies.org/files/assets/transparency_ffs.pdf http://www.globalsubsidies.org/files/assets/transparency_ffs.pdf]
-'''<span style="font-family: 'arial','sans-serif'" lang="EN-US">Global Subsidies Initiative (GSI) - "The Effects of Fossil-Fuel Subsidy Reform: A review of modelling and empirical studies"</span>'''<span style="font-family: 'arial','sans-serif'" lang="EN-US"></span>
+'''<span lang="EN-US" style="font-family: 'arial','sans-serif'">Global Subsidies Initiative (GSI) - "The Effects of Fossil-Fuel Subsidy Reform: A review of modelling and empirical studies"</span>'''<span lang="EN-US" style="font-family: 'arial','sans-serif'"></span>
-<span style="font-family: 'arial','sans-serif'" lang="EN-US">The Global Subsidies Initiative (GSI) releases the publication of Jennifer Ellis’ paper “The Effects of Fossil-Fuel Subsidy Reform: A review of modelling and empirical studies.” This is the second paper to be published in the series Untold Billions: Fossil-fuel subsidies, their impacts and the path to reform. Subsidies are powerful instruments and when granted to fossil fuels, which are at the heart of all modern economies, subsidies have impacts throughout the economy, society and environment. Understanding the complex trade-offs between the different impacts of subsidy reform is a challenge for any government considering phasing out fossil-fuel subsidies. In this report, Jennifer Ellis provides a detailed literature review, focusing on the six modeling studies in the last 20 years that have attempted to analyze global impacts of subsidies for all fuels. The studies mostly considered effects on greenhouse gas emissions and gross domestic product, but very little of the work has considered other environmental impacts or social impacts. The paper highlights a number of areas where further research should be undertaken but concludes that there is already enough evidence to demonstrate the significant environmental and economic benefits of phasing out fossil-fuel subsidies, and recommends that policy-makers do not delay in beginning the reform process.</span>
+<span lang="EN-US" style="font-family: 'arial','sans-serif'">The Global Subsidies Initiative (GSI) releases the publication of Jennifer Ellis’ paper “The Effects of Fossil-Fuel Subsidy Reform: A review of modelling and empirical studies.” This is the second paper to be published in the series Untold Billions: Fossil-fuel subsidies, their impacts and the path to reform. Subsidies are powerful instruments and when granted to fossil fuels, which are at the heart of all modern economies, subsidies have impacts throughout the economy, society and environment. Understanding the complex trade-offs between the different impacts of subsidy reform is a challenge for any government considering phasing out fossil-fuel subsidies. In this report, Jennifer Ellis provides a detailed literature review, focusing on the six modeling studies in the last 20 years that have attempted to analyze global impacts of subsidies for all fuels. The studies mostly considered effects on greenhouse gas emissions and gross domestic product, but very little of the work has considered other environmental impacts or social impacts. The paper highlights a number of areas where further research should be undertaken but concludes that there is already enough evidence to demonstrate the significant environmental and economic benefits of phasing out fossil-fuel subsidies, and recommends that policy-makers do not delay in beginning the reform process.</span>
-'''<span style="font-family: 'arial','sans-serif'" lang="EN-US">Download at</span>'''<span style="font-family: 'arial','sans-serif'" lang="EN-US">: </span><span style="font-family: 'arial','sans-serif'">[http://www.globalsubsidies.org/en/research/economic-social-and-environmental-effects http://www.globalsubsidies.org/en/research/economic-social-and-environmental-effects]</span>
+'''<span lang="EN-US" style="font-family: 'arial','sans-serif'">Download at</span>'''<span lang="EN-US" style="font-family: 'arial','sans-serif'">: </span><span style="font-family: 'arial','sans-serif'">[http://www.globalsubsidies.org/en/research/economic-social-and-environmental-effects http://www.globalsubsidies.org/en/research/economic-social-and-environmental-effects]</span>
 <br/>
-<span style="font-family: 'arial','sans-serif'" lang="EN-US">'''EARTH TRACK: EIA Energy Subsidy Estimates: A Review of Assumptions and Omissions'''</span>
+<span lang="EN-US" style="font-family: 'arial','sans-serif'">'''EARTH TRACK: EIA Energy Subsidy Estimates: A Review of Assumptions and Omissions'''</span>
-<span style="font-family: 'arial','sans-serif'" lang="EN-US">This Review provides a detailed look at gaps in federal tracking of energy subsidies in the United States. In addition to evaluating the research approach used by the US Energy Information Administration (EIA), the Review assesses how key assumptions and omissions in EIA's work resulted in a substantial undercounting of federal energy subsidies and an inaccurate portrayal of subsidy distribution across fuels. EIA estimates are also placed in the context of other assessments of domestic energy subsidies conducted over the past thirty years.</span>
+<span lang="EN-US" style="font-family: 'arial','sans-serif'">This Review provides a detailed look at gaps in federal tracking of energy subsidies in the United States. In addition to evaluating the research approach used by the US Energy Information Administration (EIA), the Review assesses how key assumptions and omissions in EIA's work resulted in a substantial undercounting of federal energy subsidies and an inaccurate portrayal of subsidy distribution across fuels. EIA estimates are also placed in the context of other assessments of domestic energy subsidies conducted over the past thirty years.</span>
-'''Read more: '''[http://bit.ly/1t6iTiB EIA  Energy  Subsidy  Estimates: A Review of  Assumptions  and Omissions]
+'''Read more: '''[http://bit.ly/1t6iTiB EIA Energy Subsidy Estimates: A Review of Assumptions and Omissions]
-<span style="font-family: 'arial','sans-serif'" lang="EN-US"></span>
+<span lang="EN-US" style="font-family: 'arial','sans-serif'"></span>
-<span style="font-family: 'arial','sans-serif'" lang="EN-US">'''IMF Note - Petroleum Product Subsidies: Costly, Inequitable, and Rising''' Petroleum product subsidies have again started to rise with the rebound in international prices. This note reviews recent developments in subsidy levels and argues that it is necessary to reform the policy framework for setting petroleum product prices in order to reduce the fiscal burden of these subsidies and to address climate change. In 2003, global consumer subsidies for petroleum products totaled nearly $60 billion. '''Read more:''' </span><span style="font-family: 'arial','sans-serif'">[http://www.imf.org/external/pubs/ft/spn/2010/spn1005.pdf Petroleum Product Subsidies: Costly, Inequitable, and Rising]</span>
+<span lang="EN-US" style="font-family: 'arial','sans-serif'">'''IMF Note - Petroleum Product Subsidies: Costly, Inequitable, and Rising''' Petroleum product subsidies have again started to rise with the rebound in international prices. This note reviews recent developments in subsidy levels and argues that it is necessary to reform the policy framework for setting petroleum product prices in order to reduce the fiscal burden of these subsidies and to address climate change. In 2003, global consumer subsidies for petroleum products totaled nearly $60 billion. '''Read more:''' </span><span style="font-family: 'arial','sans-serif'">[http://www.imf.org/external/pubs/ft/spn/2010/spn1005.pdf Petroleum Product Subsidies: Costly, Inequitable, and Rising]</span>
 <br/>

@@ Line 425: / Line 425: @@
 = Further Information =
-#'''New study on energy access subsidies conducted by EnDev and SV PPI available.''' [http://energypedia.info/extensions/FCKeditor/fckeditor/editor/GTZ study Link to abstract, download and discussion group.]
+#'''New study on energy access subsidies conducted by EnDev and SV PPI available.''' [http://www.giz.de/expertise/downloads/gtz2009-en-energy-subsidies-a-think-piece.pdf Energy Subsidies: Why, When and How?]
 #Energypedia-article about [[Financing_Models_for_Solar_Home_Systems|Financing Models for Solar Home Systems]]
 #Mirco Gaul's (SiNERGi) study on <font color="#002bb8">''Subsidy schemes for the dissemination of improved stoves''</font>gives a brief overview of the current state of approaches and strategies for the promotion of improved stoves as implemented by EnDev projects in Bolivia, Burkina Faso, Ethiopia and Mali
@@ Line 448: / Line 448: @@
 <br/>
 = References =

@@ Line 1: / Line 1: @@
 [[Portal:Financing and Funding|► Back to Financing and Funding Portal]]
@@ Line 454: / Line 453: @@
 <references /><br/>
 [[Category:Financing_and_Funding]]

@@ Line 86: / Line 86: @@
 <br/>
@@ Line 109: / Line 110: @@
 *Support local assembly through technology transfer measures
-<br/><u>Source</u>: [[:file:Gtz financing of shs in dc 1.pdf|GTZ: FINANCING OF SOLAR HOME SYSTEMS IN DEVELOPING COUNTRIES, THE ROLE OF FINANCING IN THE DISSEMINATION PROCESS, Volume I: Main Report, Updated edition 2001, Eschborn, March 2001.]]
+<br/><u>Source</u>: [[:File:Financing_of_Solar_Home_Systems_in_Developing_Countries.pdf|GTZ: FINANCING OF SOLAR HOME SYSTEMS IN DEVELOPING COUNTRIES, THE ROLE OF FINANCING IN THE DISSEMINATION PROCESS, Volume I: Main Report, Updated edition 2001, Eschborn, March 2001.]]
 <br/>
@@ Line 415: / Line 416: @@
 <br/>
 = Subsidies for Improved Cookstoves =

@@ Line 1: / Line 1: @@
-<span style="background-color: rgb(255, 255, 255);"></span>[[Portal:Financing and Funding|► Back to Financing and Funding Portal]]
+[[Portal:Financing and Funding|► Back to Financing and Funding Portal]]
-= <span lang="EN-GB"><font face="Arial">Introduction</font></span> =
+= Introduction =
-<span lang="EN-GB"><font face="Arial">Normally subsidies would not be necessary in a perfect world. There is a lot of momentum to not subsidize infrastructure expansion but make this the responsibility of the private sector, and let it be the outcome of market development. However, to realize this in the presence of prevailing market failures, non conducive policy frameworks and lack of supportive concessional financing, and generally low disposable incomes for the target population, much more capacity development and institutional reforms are required than is realistically possible. It is nearly impossible to address all these shortcomings simultaneously and expect markets to take care of public service delivery. Hence, progress and achievements are greatly facilitated when subsidies can be used to provide smart incentives.</font></span>
+Normally subsidies would not be necessary in a perfect world. There is a lot of momentum to not subsidize infrastructure expansion but make this the responsibility of the private sector, and let it be the outcome of market development. However, to realize this in the presence of prevailing market failures, non conducive policy frameworks and lack of supportive concessional financing, and generally low disposable incomes for the target population, much more capacity development and institutional reforms are required than is realistically possible. It is nearly impossible to address all these shortcomings simultaneously and expect markets to take care of public service delivery. Hence, progress and achievements are greatly facilitated when subsidies can be used to provide smart incentives.
-<br/>
+<br/>Indeed, subsidies were considered ''taboo'' by the international development community for a long time, but momentum is slowly gaining in favour of newly applying limited subsidies. Such subsidies should be designed to stimulate and initiate markets, avoid supporting the costs of operation and/or consumption in the long-run, and have a credible and transparent exit strategy. EnDev incorporated subsidies as an efficient and transparent mechanism to accelerate access to modern energy in rural and peri-urban areas.
-<span lang="EN-GB"><font face="Arial">Sometimes pure logic or economic analysis fails to indicate that subsidies should be awarded after all: modern technologies are often cheaper in terms of life cycle costs / levelized energy costs compared to prevailing traditional technologies and services; data clearly shows that 4-7 month payback times exist for investing in modern lighting services. Yet, people are not investing on a large scale as could be expected. An explanation is that poor households already spend one third of their income on traditional energy like candles, kerosene and fuel wood and have no means to invest in modern technology, however urgently they are willing to do so. Subsidies really do make a difference, for households to invest in the modern technology and for the private sector to develop the infrastructure to deliver such technology. It is important to face and accept the basic trade-off: speed vs. sustainability. Access is long overdue and the focus should be on realizing this first, but in a sustainable manner and using minimum levels of subsidy.</font></span>
+<br/>We should not forget that the infrastructure in industrialized countries was built with a high level of subsidies and public support! Electricity has been around for more than 100 years now, but the bulk of the SSA population still does not have access and remains in the dark. This in itself could be sufficient reason to develop an emergency program to correct this and apply subsidies accordingly.
-<br/>
+Sometimes pure logic or economic analysis fails to indicate that subsidies should be awarded after all: modern technologies are often cheaper in terms of life cycle costs / levelized energy costs compared to prevailing traditional technologies and services; data clearly shows that 4-7 month payback times exist for investing in modern lighting services. Yet, people are not investing on a large scale as could be expected. An explanation is that poor households already spend one third of their income on traditional energy like candles, kerosene and fuel wood and have no means to invest in modern technology, however urgently they are willing to do so. Subsidies really do make a difference, for households to invest in the modern technology and for the private sector to develop the infrastructure to deliver such technology. It is important to face and accept the basic trade-off: speed vs. sustainability. Access is long overdue and the focus should be on realizing this first, but in a sustainable manner and using minimum levels of subsidy.<br/>
-<span lang="EN-GB"><font face="Arial">It helps to make the subsidy support [[Transparency as Precondition for Reforming Subsidies|transparent]]; in most countries today, it is impossible to indicate the contribution of subsidies in the supply of grid electricity. Most likely these subsidies are huge, compounded throughout the supply chain: the generation capacity is subsidized, the fuel is subsidized or detaxed, the expansion of the transmission and distribution network is subsidized, connection fees and tariffs are subsidized, etc. Revenues from consumers do not cover the full costs of generation, transmission, distribution and bill collection.</font></span>
+It helps to make the subsidy support [[Transparency as Precondition for Reforming Subsidies|transparent]]; in most countries today, it is impossible to indicate the contribution of subsidies in the supply of grid electricity. Most likely these subsidies are huge, compounded throughout the supply chain: the generation capacity is subsidized, the fuel is subsidized or detaxed, the expansion of the transmission and distribution network is subsidized, connection fees and tariffs are subsidized, etc. Revenues from consumers do not cover the full costs of generation, transmission, distribution and bill collection.
 <br/>
-<span lang="EN-GB"><font face="Arial">In Rwanda</font></span>[[#ftn1|[1]]]<span lang="EN-GB"><font face="Arial">the electricity Roll-out program intends to connect 250,000 new customers over the next few years and applies a beneficiary contribution of less than 10% of the real cost of connection. It is not phrased as a subsidy, but effectively it is; imagine what could have been done with this amount of money in support of finding modern energy solutions for all rural households! In Senegal</font></span>[[#ftn2|[2]]]<span lang="EN-GB"><font face="Arial">several concessions have been awarded for increasing access to electricity; the average subsidy for a new connection in concession areas is about $350; alternatively, one could hand out for 5-7 free PV lanterns for the same amount.</font></span>
+In Rwanda[[#ftn1|[1]the]] electricity Roll-out program intends to connect 250,000 new customers over the next few years and applies a beneficiary contribution of less than 10% of the real cost of connection. It is not phrased as a subsidy, but effectively it is; imagine what could have been done with this amount of money in support of finding modern energy solutions for all rural households! In Senegal [[#ftn2|[2]]] several concessions have been awarded for increasing access to electricity; the average subsidy for a new connection in concession areas is about $350; alternatively, one could hand out for 5-7 free PV lanterns for the same amount.
 <br/>
-<span lang="EN-GB"><font face="Arial">Only a [[Transparency as Precondition for Reforming Subsidies|transparent cost]] and price structure lays the basis for continued discussion and optimization of the support given, the more so since subsidies always remain the outcome of a political process. Although this process cannot or should not be stopped, the subsidies it awards should be made transparent so that beneficiaries and non-beneficiaries alike understand where the support went.</font></span>
+Only a [[Transparency as Precondition for Reforming Subsidies|transparent cost]] and price structure lays the basis for continued discussion and optimization of the support given, the more so since subsidies always remain the outcome of a political process. Although this process cannot or should not be stopped, the subsidies it awards should be made transparent so that beneficiaries and non-beneficiaries alike understand where the support went.
-<span lang="EN-GB"></span><u>Source</u>: Robert vd Plas, Florian Ziegler in "EnDev Discussion Paper April 2010: Electricity Access for All - Illussions and Solutions"
+<u>Source</u>: Robert vd Plas, Florian Ziegler in "EnDev Discussion Paper April 2010: Electricity Access for All - Illussions and Solutions"
 <div><div style="border-right: medium none; padding-right: 0cm; border-top: medium none; padding-left: 0cm; padding-bottom: 4pt; border-left: medium none; padding-top: 0cm; border-bottom: 1pt solid">[[#ftnref1|[1]]]<span style="font-size: 9pt; font-family: 'arial','sans-serif'" lang="EN-US">Lighting Africa Country Study (work in progress)</span><br/><span style="font-size: 9pt; font-family: 'arial','sans-serif'" lang="EN-US"></span></div><div id="ftn2">
 [[#ftnref2|[2]]]<span style="font-size: 9pt; font-family: 'arial','sans-serif'" lang="EN-US">Lighting Africa Country Study (work in progress)</span>
@@ Line 86: / Line 78: @@
 <span style="font-family: 'arial','sans-serif'" lang="EN-US">This Review provides a detailed look at gaps in federal tracking of energy subsidies in the United States. In addition to evaluating the research approach used by the US Energy Information Administration (EIA), the Review assesses how key assumptions and omissions in EIA's work resulted in a substantial undercounting of federal energy subsidies and an inaccurate portrayal of subsidy distribution across fuels. EIA estimates are also placed in the context of other assessments of domestic energy subsidies conducted over the past thirty years.</span>
-'''<span style="font-family: 'arial','sans-serif'" lang="EN-US">Read more:</span>'''<span style="font-family: 'arial','sans-serif'" lang="EN-US">[http://earthtrack.net/files/uploaded_files/EIA subsidy review final_17Mar10.pdf http://earthtrack.net/files/uploaded_files/EIA subsidy review final_17Mar10.pdf]</span>
+'''<span style="font-family: 'arial','sans-serif'" lang="EN-US">Read more:</span>'''<span style="font-family: 'arial','sans-serif'" lang="EN-US">[http://earthtrack.net/files/uploaded_files/EIA subsidy review final_17Mar10.pdf subsidy review final_17Mar10.pdf]</span>
 <span style="font-family: 'arial','sans-serif'" lang="EN-US"></span>
-<span style="font-family: 'arial','sans-serif'" lang="EN-US">'''IMF Note - Petroleum Product Subsidies: Costly, Inequitable, and Rising''' Petroleum product subsidies have again started to rise with the rebound in international prices. This note reviews recent developments in subsidy levels and argues that it is necessary to reform the policy framework for setting petroleum product prices in order to reduce the fiscal burden of these subsidies and to address climate change. In 2003, global consumer subsidies for petroleum products totaled nearly $60 billion. '''Read more:''' </span><span style="font-family: 'arial','sans-serif'">[http://www.imf.org/external/pubs/ft/spn/2010/spn1005.pdf http://www.imf.org/external/pubs/ft/spn/2010/spn1005.pdf]</span>
+<span style="font-family: 'arial','sans-serif'" lang="EN-US">'''IMF Note - Petroleum Product Subsidies: Costly, Inequitable, and Rising''' Petroleum product subsidies have again started to rise with the rebound in international prices. This note reviews recent developments in subsidy levels and argues that it is necessary to reform the policy framework for setting petroleum product prices in order to reduce the fiscal burden of these subsidies and to address climate change. In 2003, global consumer subsidies for petroleum products totaled nearly $60 billion. '''Read more:''' </span><span style="font-family: 'arial','sans-serif'">[http://www.imf.org/external/pubs/ft/spn/2010/spn1005.pdf Petroleum Product Subsidies: Costly, Inequitable,  and Rising]</span>
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 In reality, various strategies are often combined.
-<u>Source</u>: Study done by [http://www.sinergi.de/ SiNERGi]for EnDev
+<u>Source</u>: Study done by [http://www.sinergi.de/ SiNERGi] for EnDev
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 = Subsidies for Improved Cookstoves =
-<span style="background-color: rgb(255, 255, 255);">[[Financing Mechanisms for Cookstove Dissemination#Purchasing Improved Cookstoves Through Subsidies|► Read more here]]</span>
+[[Financing_Mechanisms_for_Cookstove_Dissemination#Purchasing_Improved_Cookstoves_Through_Subsidies|► Read more here]]
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 #'''New study on energy access subsidies conducted by EnDev and SV PPI available.''' [http://energypedia.info/extensions/FCKeditor/fckeditor/editor/GTZ study Link to abstract, download and discussion group.]
-#Energypedia-article about [[Financing Models for SHS|Financing models for SHS]]
+#Energypedia-article about [[Financing_Models_for_Solar_Home_Systems|Financing Models for Solar Home Systems]]
 #Mirco Gaul's (SiNERGi) study on <font color="#002bb8">''Subsidy schemes for the dissemination of improved stoves''</font>gives a brief overview of the current state of approaches and strategies for the promotion of improved stoves as implemented by EnDev projects in Bolivia, Burkina Faso, Ethiopia and Mali
 #paper by Kenneth P. Thomas: [http://www.iisd.org/publications/pub.aspx?pno=1069 Assessing Sustainable Development Impacts of Investment Incentives: A Checklist], IISD, 2009
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 <references /><br/>
 [[Category:Solar_Home_Systems_(SHS)]]

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-<span lang="EN-GB"><font face="Arial">It helps to make the subsidy support [[Transparency_as_Precondition_for_Reforming_Subsidies|transparent]]; in most countries today, it is impossible to indicate the contribution of subsidies in the supply of grid electricity. Most likely these subsidies are huge, compounded throughout the supply chain: the generation capacity is subsidized, the fuel is subsidized or detaxed, the expansion of the transmission and distribution network is subsidized, connection fees and tariffs are subsidized, etc. Revenues from consumers do not cover the full costs of generation, transmission, distribution and bill collection.</font></span>
+<span lang="EN-GB"><font face="Arial">It helps to make the subsidy support [[Transparency as Precondition for Reforming Subsidies|transparent]]; in most countries today, it is impossible to indicate the contribution of subsidies in the supply of grid electricity. Most likely these subsidies are huge, compounded throughout the supply chain: the generation capacity is subsidized, the fuel is subsidized or detaxed, the expansion of the transmission and distribution network is subsidized, connection fees and tariffs are subsidized, etc. Revenues from consumers do not cover the full costs of generation, transmission, distribution and bill collection.</font></span>
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-<span lang="EN-GB"><font face="Arial">Only a [[Transparency_as_Precondition_for_Reforming_Subsidies|transparent cost]] and price structure lays the basis for continued discussion and optimization of the support given, the more so since subsidies always remain the outcome of a political process. Although this process cannot or should not be stopped, the subsidies it awards should be made transparent so that beneficiaries and non-beneficiaries alike understand where the support went.</font></span>
+<span lang="EN-GB"><font face="Arial">Only a [[Transparency as Precondition for Reforming Subsidies|transparent cost]] and price structure lays the basis for continued discussion and optimization of the support given, the more so since subsidies always remain the outcome of a political process. Although this process cannot or should not be stopped, the subsidies it awards should be made transparent so that beneficiaries and non-beneficiaries alike understand where the support went.</font></span>
 <span lang="EN-GB"></span><u>Source</u>: Robert vd Plas, Florian Ziegler in "EnDev Discussion Paper April 2010: Electricity Access for All - Illussions and Solutions"
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 = Direct and Indirect Subsidies =
-<span style="background-color: rgb(255, 255, 255);"></span>[[Financing_Mechanisms_for_Cookstove_Dissemination#What_Distinguishes_Direct_from_Indirect_Subsidies.3F|► Read about what distinguishes indirect and direct subsidies here]]<br/>
+<span style="background-color: rgb(255, 255, 255);"></span>[[Financing Mechanisms for Cookstove Dissemination#What Distinguishes Direct from Indirect Subsidies.3F|► Read about what distinguishes indirect and direct subsidies here]]<br/>
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 = Smart Subsidies =
-<span style="background-color: rgb(255, 255, 255);"></span>[[Financing_Mechanisms_for_Cookstove_Dissemination#Smart_Subsidies|► Read about Smart Subsidies here]]<br/>
+<span style="background-color: rgb(255, 255, 255);"></span>[[Financing Mechanisms for Cookstove Dissemination#Smart Subsidies|► Read about Smart Subsidies here]]<br/>
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 = Subsidies for Solar Home System Promotion =
-So far all [[Solar Home Systems|SHS]] programmes have relied on subsidies of one sort or another. In doing so it is often argued that market imperfections (e.g. lack of private financial institutions in rural areas, lacking information on available SHS options) justify the subsidisation of SHS or related activities. The challenging task is then how to target and allocate those corrective subsidies. This is a difficult question because what is deemed a market imperfection may well be economic barriers or transaction costs correctly priced by the market. For instance, is it a market imperfection that small amounts of money are more costly to lend than large amounts, or that lending against a steady stream of income is less risky than a loan given to a household with irregular or no income? Probably not. One could still make a case for special support measures that redress social or economic imbalances, but the case would rest on other arguments than that of imperfect or distorted markets.
+So far all [[Solar Home Systems (SHS)|SHS]] programmes have relied on subsidies of one sort or another. In doing so it is often argued that market imperfections (e.g. lack of private financial institutions in rural areas, lacking information on available SHS options) justify the subsidisation of SHS or related activities. The challenging task is then how to target and allocate those corrective subsidies. This is a difficult question because what is deemed a market imperfection may well be economic barriers or transaction costs correctly priced by the market. For instance, is it a market imperfection that small amounts of money are more costly to lend than large amounts, or that lending against a steady stream of income is less risky than a loan given to a household with irregular or no income? Probably not. One could still make a case for special support measures that redress social or economic imbalances, but the case would rest on other arguments than that of imperfect or distorted markets.
 Hence, the core of the discussion on subsidies boils down to the question whether SHS serve economic development or other public policy objectives. If this question is answered in the affirmative, the alleged violations of free market principles often criticised by opponents of subsidisation appear in a different light. However, the claim of contributing to the achievement of general welfare objectives has important impacts on the design of projects: SHS projects should be designed as but one component of a larger programme aiming at a variety of development objectives like power sector reform, rural electrification, and rural development.
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 <references /><br/>
 [[Category:Financing_and_Funding]]