RWTH Study Evaluates Inefficiency of Fuel Subsidies (heise.de)
0xBASE INTEL BRIEF
- Monthly expenditure of 330 million euros shows poor targeting.
- Less than 9 percent of aid reaches energy-vulnerable demographics.
- Subsidy-induced demand hampers market stabilization efforts.
"A study from RWTH Aachen University highlights that the state-funded fuel rebate, costing 330 million euros monthly, fails to effectively support those in need. Only 8.6 percent of the funding reaches energy-poor households. Furthermore, the subsidy has triggered a rise in fuel demand, counteracting its intended relief purpose. The findings suggest that blanket subsidies for fossil fuels are ineffective tools for achieving social resilience or energy stability."
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