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Manufacturing firms shouldn't fear the true cost of fuel – here's why

08 Apr 2021
Jenny Larsen,
Main picture by Juozas Šalna, licensed under CC BY 2.0
Fresh
in collaboration with the World Bank provides concrete evidence that removing fossil fuel subsidies would not only make environmental sense but would also improve firms’ economic performance. New firm-level data from Oman show that higher fuel prices are not a drag on competitiveness. In fact, reducing subsidies and allowing fuel prices to rise could ultimately aid the post-COVID-19 recovery. This is because, according to the data studied, higher fuel prices drive business upgrading, leading to a boost in productivity. They could also encourage manufacturing companies to switch to the kind of long-term sustainable efficiency practices needed to stop climate change. ....

Juergen Amann , Charles Fang Chin Cheng , Jenny Larsen , Nicola Cantore , Valentin Todorov , International Energy Agency , World Bank , Department Of Policy Research , Omani Annual Industrial , United Nations Framework Convention On Climate Change , Massimiliano Cal , Charles Fang Chin , Porter Hypothesis , Arabian Peninsula , Middle East , United Nations Framework Convention , Climate Change , Policy Research , External Relations , ஜூர்கன் அமன் , ஜென்னி லார்சன் , வாலண்டைன் டோட்ராவ் , உலகம் வங்கி , துறை ஆஃப் பாலிஸீ ஆராய்ச்சி , ஒன்றுபட்டது நாடுகள் கட்டமைப்பு மாநாடு ஆன் காலநிலை மாற்றம் , அரேபியன் தீபகற்பம் ,

Manufacturing firms shouldn't fear true cost of fuel - here's why

UNIDO
Main picture by Juozas Šalna, licensed under CC BY 2.0
Fresh UNIDO-led research in collaboration with the World Bank provides concrete evidence that removing fossil fuel subsides would not only make environmental sense but would also improve firms’ economic performance. New firm-level data from Oman show that higher fuel prices are not a drag on competitiveness. In fact, reducing subsidies and allowing fuel prices to rise could ultimately aid the post-COVID-19 recovery. This is because, according to the data studied, higher fuel prices drive business upgrading, leading to a boost in productivity. They could also encourage manufacturing companies to switch to the kind of long-term sustainable efficiency practices needed to stop climate change. ....

Juergen Amann , Charles Fang Chin Cheng , Nicola Cantore , Valentin Todorov , International Energy Agency , World Bank , Omani Annual Industrial , United Nations Framework Convention On Climate Change , Massimiliano Cal , Charles Fang Chin , Porter Hypothesis , Arabian Peninsula , Middle East , United Nations Framework Convention , Climate Change , ஜூர்கன் அமன் , வாலண்டைன் டோட்ராவ் , உலகம் வங்கி , ஒன்றுபட்டது நாடுகள் கட்டமைப்பு மாநாடு ஆன் காலநிலை மாற்றம் , அரேபியன் தீபகற்பம் , நடுத்தர கிழக்கு , ஒன்றுபட்டது நாடுகள் கட்டமைப்பு மாநாடு , காலநிலை மாற்றம் ,