jump to navigation

Fossil Fuel Subsidies More Than Double Those for Renewables October 29, 2009

Posted by Laura Arnold in Uncategorized.
trackback

Although we already posted information about this study last month, it is worth posting again just to show the diagram to the left. We think this information is so important we wantto make sure you didn’t miss it.

We encourage you to read this report and to share it with others.

October 23, 2009
Washington, D.C., United States [RenewableEnergyWorld.com]

The largest U.S subsidies to fossil fuels are attributed to tax breaks that aid foreign oil production, according to research from the Environmental Law Institute (ELI). The study, which reviewed fossil fuel and energy subsidies for Fiscal Years 2002-2008, revealed that the lion’s share of energy subsidies supported energy sources that emit high levels of greenhouse gases.

The research demonstrates that the federal government provided substantially larger subsidies to fossil fuels than to renewables. Fossil fuels benefited from approximately US $72 billion over the seven-year period, while subsidies for renewable fuels totaled only $29 billion.
More than half the subsidies for renewables—$16.8 billion—are attributable to corn-based ethanol. Of the fossil fuel subsidies, $70.2 billion went to traditional sources—such as coal and oil—and $2.3 billion went to carbon capture and storage.

“The combination of subsidies—or ‘perverse incentives’— to develop fossil fuel energy sources, and a lack of sufficient incentives to develop renewable energy and promote energy efficiency, distorts energy policy in ways that have helped cause, and continue to exacerbate, our climate change problem,” said John Pendergrass, ELI senior attorney. “With climate change and energy legislation pending on Capitol Hill, our research suggests that more attention needs to be given to the existing perverse incentives for ‘dirty’ fuels in the U.S. Tax Code.”

The subsidies examined fall into two categories: foregone revenues, mostly in the form of tax breaks and direct spending, in the form of expenditures on research and development and other programs.

ELI researchers applied the conventional definitions of fossil fuels and renewable energy. Fossil fuels include petroleum and its byproducts, natural gas, and coal products, while renewable fuels include wind, solar, biofuels and biomass, hydropower, and geothermal energy production.

For more information on the research from ELI, click here.

Advertisements

Comments»

No comments yet — be the first.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: