Old Rocks
Diamond Member
- Thread starter
- #121
LOL But you don't object to these subsidies at all. You are a hypocrite;Iβm all for progress
Libs seem to think MAGAs want solar panels, ect to fail
We dont
But I do object to government, which is prone to failure, pushing solar through subsidies and at the same time working to suppress fossil fuel
Government subsidies for fossil fuels amount to significant financial support for the industry, with estimates of U.S. subsidies alone reaching around $20 billion annually, while global subsidies can exceed $10 trillion.
Overview
Fossil fuel subsidies are financial incentives provided by governments to support the production and consumption of fossil fuels, including coal, oil, and natural gas. These subsidies can take various forms, including direct payments, tax breaks, and other financial incentives aimed at reducing the costs associated with fossil fuel production and consumption.Scale
- United States: The U.S. government provides approximately $20 billion in direct subsidies to the fossil fuel industry each year. This includes tax benefits and other forms of support, with about 80% allocated to natural gas and crude oil, and 20% to coal.
1 - Global Context: Worldwide, fossil fuel subsidies are estimated to be around $10.5 trillion annually, with explicit subsidies (direct financial support) amounting to about $1.5 trillion in 2022 alone. This figure represents a significant increase due to rising energy prices following geopolitical events, such as the invasion of Ukraine.
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Types
- Direct Subsidies: These include cash payments or grants to fossil fuel companies to lower production costs.
- Tax Breaks: Various provisions in tax codes allow fossil fuel companies to deduct expenses related to exploration and production, such as the Intangible Drilling Costs Deduction and the Percentage Depletion Allowance.
2 - Consumption Subsidies: These are aimed at consumers, making fossil fuels cheaper at the pump or for heating, often through price controls or direct payments to households.
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Implications
- Environmental Impact: Subsidizing fossil fuels undermines efforts to combat climate change by encouraging continued reliance on carbon-intensive energy sources. The negative externalities associated with fossil fuel use, such as greenhouse gas emissions and air pollution, are significant and often not accounted for in the market price of fossil fuels.
2 - Economic Distortion: These subsidies distort energy markets, making it difficult for renewable energy sources to compete on a level playing field. They can also lead to overproduction and increased emissions, further complicating climate goals.
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Recent
Recent reports indicate that the U.S. has seen an increase in fossil fuel subsidies, with new spending bills potentially adding $40 billion in subsidies over the next decade. This reflects ongoing political challenges in phasing out these subsidies despite calls for reform.Yale University
In summary, government subsidies for fossil fuels represent a substantial financial commitment that has significant implications for the economy, the environment, and the transition to renewable energy sources. As global awareness of climate change grows, the sustainability and justification of these subsidies are increasingly under scrutiny.
Environmental and Energy Study Institute
Fact Sheet | Fossil Fuel Subsidies: A Closer Look at Tax Breaks and ...
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