In this week’s episode, host Daniel Raimi discusses fossil fuel subsidies with Paasha Mahdavi, an associate professor and cofounder of the 2035 Initiative at the University of California, Santa Barbara. They talk about how subsidies on goods such as gasoline and diesel lead to lower prices for consumers. However, because these subsidies encourage the use of fossil fuels, reforming such policies is important when promoting the use of renewable energy. Mahdavi explores why many attempts to reform fossil fuel subsidies have failed, and he proposes potential avenues for addressing the weaknesses of reforms which could lead to failure of the subsidies.

References and recommendations:

“Fossil fuel subsidy reforms have become more fragile” by Paasha Mahdavi, Michael L. Ross, and Evelyn Simoni; https://www.nature.com/articles/s41558-025-02283-4

“Why Do Governments Tax or Subsidize Fossil Fuels?” by Paasha Mahdavi, Cesar B. Martinez-Alvarez, and Michael L. Ross; https://www.journals.uchicago.edu/doi/abs/10.1086/719272

“Human Nature: Nine Ways to Feel About Our Changing Planet” by Kate Marvel; https://www.harpercollins.com/products/human-nature-kate-marvel

“Climate Change and National Security” TEDx talk by Josh Busby; https://www.youtube.com/watch?v=S8neK0G0NJ8

Understanding Fossil Fuel Subsidies Around the World, with Paasha Mahdavi

Resources Radio is a weekly podcast by Resources for the Future. Each week we talk to leading experts about climate change, electricity, ecosystems, and more, making the latest research accessible to everyone.