Public Subsidies - a Condition Sine Qua Non for the Energy Sector in Bulgaria?

Svetlana Gercheva ()
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Svetlana Gercheva: University of Economics - Varna, Varna, Bulgaria

Izvestia Journal of the Union of Scientists - Varna. Economic Sciences Series, 2021, vol. 10, issue 2, 61-68

Abstract: The current paper deals with the provision of public subsidies within the energy sector in Bulgaria. In light of the liberalization of the domestic market and its integration into the internal electricity market of the EU, the question about public subsidies' persistence has been raised. Several arguments are given in support of further subsidization, both on the market for electricity and for capacity (cold reserve provision) in Bulgaria. Public subsidies secure funding for the positive externalities generated by the energy sector in a sustainable way. The public sector also provides financial support for the emerging Bulgarian market of capacity. Nevertheless, energy subsidies need a revision in terms of their restructuring in line with the EU ambition for leadership towards low-emission and climate-neutral economy by 2050.

Keywords: public subsidy; electricity sector; positive externalities; capacity market; cold reserve provision; market liberalization (search for similar items in EconPapers)
JEL-codes: H23 Q41 Q48 (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:vra:journl:v:10:y:2021:i:2:p:61-68

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