"UZBEKISTAN’S ENERGY PARADOX: FROM SUBSIDIES TO SUSTAINABILITY"
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Abstract
Uzbekistan’s energy sector faces significant challenges, including systemic inefficiencies, over-reliance on subsidies, and outdated infrastructure. Despite substantial natural gas reserves, recurring energy shortages and wastage—estimated at 25–30% across households, businesses, and farms—highlight the urgent need for reform. This study examines the impact of government subsidies, which cost $1.15 billion annually, on perpetuating inefficient consumption patterns and delaying the adoption of energy-efficient technologies. Behavioral insights, such as bounded rationality and loss aversion, reveal gaps in consumer awareness and motivation to adopt sustainable practices. The findings suggest that redirecting subsidy funds toward investments in renewable energy, energy-efficient technologies, and infrastructure modernization could significantly reduce energy wastage and alleviate fiscal burdens. This transition is essential for achieving energy security, sustainability, and economic resilience in Uzbekistan.
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References
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