From 2002 - 2008, Feds subsidized fossil fuels $79 billion vs $29 billion for renewables

[swag]

Sounds like the Bush/Cheney Energy Plan in action.

http://www.ritholtz.com/blog/2010/07/subsidizing-fossil-fuels/



A few bullets from the study:

•The vast majority of federal subsidies for fossil fuels and renewable energy supported energy sources that emit high levels of greenhouse gases when used as fuel.

•The federal government provided substantially larger subsidies to fossil fuels than to renewables. Subsidies to fossil fuels—a mature, developed industry that has enjoyed government support for many years—totaled approximately $72 billion over the study period, representing a direct cost to taxpayers.

•Subsidies for renewable fuels, a relatively young and developing industry, totaled $29 billion over the same period.

•Subsidies to fossil fuels generally increased over the study period (though they decreased in 2008), while funding for renewables increased but saw a precipitous drop in 2006-07 (though they increased in 2008). The largest subsidies to fossil fuels were written into the U.S. Tax Code as permanent provisions. By comparison, many subsidies for renewables are time-limited initiatives implemented through energy bills, with expiration dates that limit their usefulness to the renewables industry.

[dipsydoodle]

1. OK - so remove the tax breaks completely

and then decide how much more you be prepared to pay for fuel because sure as eggs are eggs the price would increase to reflect that change and you would have no control over that. You'd also need to recognise that once removed there would probably be no going back.

btw - I'm UK so it obviously has no affect on me whatsoever what you do. I'm just saying.

[Radical Activist]

4. And the price of renewable energy

will be more comparable to fossil fuels as well once we stop using taxpayer money to make coal and oil artificially cheap. It's something we have to do. The extra price is worth it.

[Radical Activist]

2. This is one reason why renewables can't find room in the market.

They can't compete against artificially cheap coal that's subsidized by taxpayers. Step one is to stop subsidizing fossil fuels. Obama has already pledged to end all oil subsidies so that's good.

What concerns me is that the climate change bill may end up containing too many coal subsidies, like studies for carbon capture scams. We need to pressure the Senate during the next week or two.

[Statistical]

5. "pledged to end all oil subsidies"

Call me a cynic but I will believe it when I see it.

I remember a pledge on earmarks ... that didn't seem to last a week.

You are right though subsidies for fossil fuels need to end. Without it altenratives are fighting with one hand tied behind their back.

They aren't forced to compete against the free market price but rather an artificially low one. The worst part about subsidies is they can be changed to continue the status quo.

Say price of solar drops in half and the price of coal rises 50%. Free market would indicate utilities would shift more to solar. Not if the subsidies on coal rise 70% making coal cheaper than ever after subsidies. Subsidies can be used to keep us hooked on fossil fuels decades after alternatives can compete on the open market.

[Radical Activist]

6. It's in his proposed budget.

It's up to Congress now.

[Radical Activist]

3. And all that money wasted on ethanol contributes to the Gulf Dead Zone.

I mean the dead zone caused by industrial agriculture chemicals that existed before the BP oil spill.

Bush's hydrogen fuel cell spending was another distraction that kept us from pursing alternatives that are more realistic in the near-term, like plug-in hybrids. Obama already reversed that by putting more money into battery research and mandating better fuel economy standards. But, we still need to tackle the coal industry.

[Radical Activist]

7. On second glance, the $29 billion for renewables is innacurate

because it includes ethanol. The lifecycle carbon emissions of ethanol are no better than regular gasoline. Fossil fuels are used heavily in its production and our industrial agriculture system is very damaging to the environment. Ethanol is nothing but a new market for corn and ADM. Add $16.8 billion for ethanol to the side of useless corporate subsidies. Only $12.2 went to renewables.