Biofuels subsidies in the US have reached 'startlingly high levels'
Quicknote bioenergy economics
A new report commissioned by the International Institute for Sustainable Development's Global Subsidies Initiative (GSI) provides the most comprehensive tally to date of subsidies to liquid biofuels in the United States. The first in a series of studies covering Australia, Brazil, Canada, the European Union and Switzerland, the report reveals that subsidies to biofuels in the US have reached startlingly high levels, and are characterized by a troubling lack of policy coherence.
In the USA, hundreds of government programs have been created to support virtually every stage of production and consumption relating to ethanol and biodiesel. With subsidies stacked on top of each other, there is scant evidence that those proposing these incentives have a clear picture of the full gamut of support already provided by the different levels of government. Nor does there appear to be any assessment of the overall impact that government support for biofuels is having on the environment and the economy. And, while already at unprecedented levels per unit of energy, subsidies to biofuels are projected to expand, since the bulk of subsidies are tied to output and output is increasing at double-digit rates of growth.
Government subsidies to liquid biofuels are being promoted under the banner of energy security, CO2 emission reduction, and rural development. Yet the subsidies keep millions of potential energy farmers in the developing world in poverty. For a country that prides itself for its philosophy of free trade, market capitalism and globalisation, the contradiction is all the greater.
American consumers are paying billions worth of taxes to subsidize uncompetitive farmers, whereas they could import biofuels from the developing world. This would be better for American consumers and it would lift millions of the world's poorest out of poverty.
On October 25th, there will be a press conference at the National Press Club, Washington D.C., about this issue, when the report is made public. We will surely follow up on it [entry ends here].
ethanol :: biodiesel ::biomass :: bioenergy :: biofuels :: energy :: sustainability :: free trade :: subsidies :: United States ::
A new report commissioned by the International Institute for Sustainable Development's Global Subsidies Initiative (GSI) provides the most comprehensive tally to date of subsidies to liquid biofuels in the United States. The first in a series of studies covering Australia, Brazil, Canada, the European Union and Switzerland, the report reveals that subsidies to biofuels in the US have reached startlingly high levels, and are characterized by a troubling lack of policy coherence.
In the USA, hundreds of government programs have been created to support virtually every stage of production and consumption relating to ethanol and biodiesel. With subsidies stacked on top of each other, there is scant evidence that those proposing these incentives have a clear picture of the full gamut of support already provided by the different levels of government. Nor does there appear to be any assessment of the overall impact that government support for biofuels is having on the environment and the economy. And, while already at unprecedented levels per unit of energy, subsidies to biofuels are projected to expand, since the bulk of subsidies are tied to output and output is increasing at double-digit rates of growth.
Government subsidies to liquid biofuels are being promoted under the banner of energy security, CO2 emission reduction, and rural development. Yet the subsidies keep millions of potential energy farmers in the developing world in poverty. For a country that prides itself for its philosophy of free trade, market capitalism and globalisation, the contradiction is all the greater.
American consumers are paying billions worth of taxes to subsidize uncompetitive farmers, whereas they could import biofuels from the developing world. This would be better for American consumers and it would lift millions of the world's poorest out of poverty.
On October 25th, there will be a press conference at the National Press Club, Washington D.C., about this issue, when the report is made public. We will surely follow up on it [entry ends here].
ethanol :: biodiesel ::biomass :: bioenergy :: biofuels :: energy :: sustainability :: free trade :: subsidies :: United States ::
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