Energy Subsidies

Dependence on Taxpayer Subsidies

Verifiable benefits of biofuels and the Renewable Fuels Standards (RFS) remain unproven despite claims made. The dramatic end to the $6 Billion US Ethanol subsidies was predictable and no doubt painful. Farm News

In truth, and all the gains not withstanding, there had to be pain when the training wheels came off. An energy industry infrastructure for a fuel economy was established and now launched on its own towards an unknown future. Carbon energy sectors recognize the same future for their subsidies and resist it feverishly.

It is too late to regret the existence of taxpayer subsidies – they are the core drivers of energy policy. Estimates of the extent of US fossil energy subsidies (excluding coal) range upward from $15 Billion US annually. Industry Subsidies

Subsidies for clean, renewable energy are a new idea. Their essential value in establishing alternative infrastructure for a more economically and environmentally sustainable energy future is fully supported by energy industry precedent.

This is recognized globally. Wind power subsidies exist in many countries in terms of energy generation tariffs. Economic policy calls for tariffs that reward the generation and supply of Renewable Energy to the distribution grid. Pricing policy initially developed for wind energy easily evolves to accommodate PV and other forms of renewable energy supply. Pricing Policy