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Energy Price Crisis - Is there a case for government subsidy of energy intensive industries?

Graham Watson

14th August 2022

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It's interesting to see the government has drawn up plans to subsidise energy for energy-intensive businesses.

It is something that has been on the cards for a while, and has high opportunity cost.

However, there are also distributional issues - who decides which industries are entitled to the subsidies or not? The risks of government failure are apparent.

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Graham Watson

Graham Watson has taught Economics for over twenty years. He contributes to tutor2u, reads voraciously and is interested in all aspects of Teaching and Learning.

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