a Business Spectator publication

America's energy subsidy myth

salon.com

Listen to the typical conservative rhetoric about energy being thrown around on talk radio or in Republican presidential debates, and you’re likely to hear that our government primarily uses its regulatory and financial power to create a destructive green energy boondoggle – one that enriches a few politically connected Solyndra executives, appeases a bunch of wild-eyed tree huggers, but hides the fact that renewables supposedly can’t stand on their own in the private sector.

In the face of catastrophic climate change and dwindling fossil fuel resources, this cartoonish narrative has gained traction because it invokes the moment’s most powerful political metonyms, from implicit allegations of crony capitalism to hippie-themed epithets about environmentalists to “free market” fundamentalism. The underlying idea – which will only be more amplified in the wake of the Obama administration’s pipeline decision Wednesday – is that fossil fuels are being persecuted by the American government.

Comments on this article

The approbation afterwards

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answering my own question

From the Age March 2011: "the $12.2 billion in fossil fuel incentives dwarfs the $1.1 billion for climate policy in 2010-11, and the gap has grown by $1 billion since 2007-8."

that's just the Feds, not including state support.

Canberra Times, 2 Jan 2012: "In 2008 and 2009, $550 billion was spent globally on fossil fuel subsidies. Only $50 billion was invested in supporting renewable energy development."

In other words, subsidies of of 11:1 still don't provide a level enough playing field for the dead dinosaur industry. I wouldn't like to see a soccer game pitting 11 players against one, unless it was my team that was kicking all the goals.

And over here?

While these numbers are fascinating (I make the subsidy ratio 12:1 in favour of fossils), what is the Australian situation? I'm sure it would be tedious but not impossible to come up with a reasonably accurate number, taking into account the diesel fuel rebate (a double subsidy in the case of fuel used to dig up more dead dinosaurs), one-offs like the recent bizarre decision by the outgoing NSW govt to subsidise coal extraction, and the ongoing support to the auto industry. That's just off the top of my head, there must be billions of dollars worth of other subsidies for the dead dinosaur industry. Has anyone got a link to research along these lines?