Federal energy subsidies in the USA...
From 2010-2019 solar energy received 205x more in federal subsides than oil and natural gas per unit of electricity generated.
A brief history of federal energy subsidies…
Federal energy subsidies in the United States have a long history, with roots in the late 18th and early 19th centuries, as the government sought to bolster a nascent coal industry and later the oil and gas sectors. This tradition of federal subsidies began to significantly expand with the rise of large-scale electricity production and distribution in the early 20th century. Federal subsidies for energy have been employed as a tool for accomplishing various economic, environmental, and strategic goals.
Over the past century, various forms of energy have received subsidies, including fossil fuels (oil, natural gas, and coal), nuclear energy, and renewable sources (such as wind, solar, and biofuels). The reasoning behind these subsidies varies greatly, reflecting the economic, political, and social landscape at the time. For example, oil and gas subsidies during the 20th century were largely justified on the grounds of national security and energy independence. The government aimed to ensure a steady, domestic supply of energy to fuel the nation's growth and protect it from foreign supply shocks.
In contrast, nuclear energy subsidies in the mid to late 20th century were partly justified by the goal of advancing scientific research and maintaining technological leadership in an era defined by the Cold War and space race. Also, nuclear power was seen as a way to meet the growing electricity demands of a rapidly industrializing country without increasing air pollution or dependence on foreign oil.
In the late 20th and early 21st centuries, with growing concern about climate change and environmental sustainability, the justification for federal energy subsidies began to shift. The subsidies for renewable energy, such as wind, solar, and biofuels, are aimed at mitigating the environmental impact of energy production and consumption. These subsidies have been justified on the grounds of "market failure" - the argument that the market alone will not adequately invest in renewable energy due to its high upfront costs and the unknown long-term nature of its benefits. Hence, government intervention is claimed to be necessary to "level the playing field" and help these emerging industries reach scale and become competitive with established energy sources.
Comparing subsidies for renewables to fossil fuels…
The question of fairness in comparing federal subsidies for fossil fuels to those for renewables is a complex one, as these subsidies are rooted in different contexts and address different needs. It's true that fossil fuels are used for more than just electricity production — they are also integral to transportation, industrial processes, and even home heating. On the other hand, renewable sources like solar and wind primarily produce electricity, which makes a direct comparison somewhat difficult.
When fossil fuels are subsidized, it impacts a wider range of sectors and activities due to their broader application. Therefore, the societal and economic effects of these subsidies are more immediate and widespread.
Renewable energy subsidies, on the other hand, primarily support the development and deployment of technologies that generate electricity. These subsidies are generally justified by the need to address climate change and promote cleaner forms of energy. The benefits of these subsidies may be more long-term and less immediately visible than those of fossil fuel subsidies.
Given these differences, comparing fossil fuel subsidies to renewable energy subsidies requires more than just looking at the dollar amounts. One also needs to consider the broader impacts and trade-offs.
Real federal energy subsidies in the USA from 2010-2019…
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