During the fiscal years of 2002-2008 the United States handed out subsidies to fossil fuel industries to a tune of 72 billion dollars, while renewable energy subsidies, during the same period, reached 29 billion dollars. Conducted by the Environmental Law Institute (ELI) in partnership with the Woodrow Wilson International Center for Scholars, the research shows that the US government has heavily subsidized ‘dirty fuels’ that emit high levels of greenhouse gases.
The funds provided to renewable energy sources plunges further when one takes into account that of the 29 billion dollars, 16.8 billion went to subsidizing corn-based ethanol, an energy source that numerous studies have shown is not carbon neutral and has been blamed in part for deforestation in the tropics and the global food crisis. The remaining 12.2 billion went to wind, solar, non-corn based biofuels and biomass, hydropower, and geothermal energy production.
Of the 72 billion dollars given to fossil fuels, 2.3 billion went to carbon capture and storage. The rest of the funds went to oil and coal.
“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,” notes ELI Senior Attorney John Pendergrass. “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 are provided through tax breaks and direct funds provided for research and development.
Environmental disappointments under Obama
(08/24/2009) While the President has been bogged down for the last couple months in an increasingly histrionic health-care debate-which has devolved so far into ridiculousness that one doesn’t know whether to laugh or cry-environmental decisions, mostly from the President’s appointees have still been coming fast and furious. However, while the administration started out pouring sunshine on the environment (after years of obfuscated drudgery under the Bush administration), they soon began to move away from truly progressive decisions on the environment and into the recognizable territory of playing it safe-and sometimes even stupid.
(07/30/2009) The U.S. coal sector will need to cut production 50 million tons this year due to falling demand, reports The Wall Street Journal. The cuts come in addition to even larger reductions earlier in the year.
(07/16/2009) Sustainable biofuels can be a reality but only in combination with reductions in fuel demand and increased productivity on existing agricultural lands, argue researchers writing in the journal Science. Five years ago biofuels were seen as a panacea for the world’s energy hunger and the need to address climate change, but increased production of biofuels soon contributed to a clutch of problems, including competition with food, resulting in rising prices, and large-scale conversion of rainforests and tropical grasslands for feedstocks, resulting in biodiversity loss and increased greenhouse gas emissions. Environmentalists and scientists condemned many biofuels — including ethanol produced from Midwestern corn ethanol and biodiesel generated from European rapeseed and Southeast Asian palm oil — as a short-sighted energy solution. Some biofuels were found to be even worse for the environment, and more costly, than conventional gasoline. However some researchers remain optimistic that smart biofuel production could help meet energy demand without hurting people or the planet. In a Science Policy Forum piece, David Tilman and colleagues explore some of these options, noting that biofuels can be produced in substantial quantities at low environmental cost