So far, European governments’ response to the Iran energy shock has missed the mark. Rather than subsidizing energy consumption by reducing fuel taxes, they should be pushing forward with a system that discourages emissions, incentivizes the adoption of renewables, and generates public revenues.
SOFIA—Since Israel and the United States launched their war on Iran in February, global energy prices have skyrocketed, with crude oil reaching nearly $115 per barrel at the beginning of this month. While this shock has hit low-income countries the hardest, it also places significant strain on high-income Europe. But it also presents an opportunity for Europe to reinvigorate its green transition—and European governments are failing to seize it.
Source:
www.project-syndicate.org
