Energy subsidies have been criticized due to their economic inefficiency and promotion of wasteful usage of energy and associated carbon emissions. Conversely, environmental taxes are advocated as efficient policy instruments. Nonetheless, removing subsidies and taxing energy can be politically...

Energy subsidies are causing adverse effects on the economy and environment stimulating inefficient resource allocation and excessive energy consumption. Therefore, multiple positive effects are likely to be obtained if subsidies are reduced or removed completely. This study estimates indirect...