Energy subsidies – Burn it

One my pet peeves is indirect subsidies. They distort the economy and ruin the environment. It is nothing but robbing Paul to pay Peter. But since Peter also gets robbed to pay Paul, no one really benefits. Well there are some Pauls and Peters who manage to get the tax man to rob and not get robbed. Exhaustive Get the Energy Sector off the Dole article by Jeffery Leonard is an excellent read.

Why ending all government subsidies for fuel production will lead to a cleaner energy future—and why Obama has a rare chance to make it happen.

We can be sure that the same arguments is applicable in India or pretty much any country.