Global energy security would improve through a decrease in energy imports and increased availability of energy goods for export. World markets for natural gas and petroleum products would particularly benefit from such a shift. There are large differences between the countries considered, in types and magnitudes of subsidy and in their policy objectives. The energy sectors of all the countries analysed have some degree of government intervention. In most cases, the objectives are to ensure common prices below the cost of supply, to encourage private or public energy consumption and to provide access to energy for the largest possible number of people.
Many countries also subsidise energy production to protect local output and employment.
Such subsidies, which may discourage consumption if they bring higher prices than would otherwise obtain, are discussed but not quantitatively analysed in this study. Most non-OECD countries, including all those covered here, now pursue policies aimed at increasing the role of the market in the economy and in the provision of energy supplies. This process mirrors liberalisation policies and structural and regulatory reforms under way or already accomplished in OECD countries. In most cases, subsidy reduction and the removal of price controls are central features of these policies. OECD countries have made enormous progress in reducing subsidies on energy consumption and production and in freeing energy prices.