What are some examples of fossil fuel subsidies provided by the government?


From: Paddy Tennant - March 15th, 2024
  • How much money has been spent on subsidizing fossil fuels by U.S. taxpayers over the past 111 years?

For over a century, U.S. taxpayers have been subsidizing the fossil fuel industry, despite the harmful environmental and health impacts associated with burning coal, oil, and natural gas. The federal government has been providing subsidies to fossil fuel companies since the early 1900s, and these subsidies continue to this day.


According to a report by Oil Change International, U.S. taxpayers have spent over $15 billion per year on fossil fuel subsidies in recent years. These subsidies come in the form of tax breaks, direct payments, and other financial incentives that help prop up the fossil fuel industry and make it more profitable.


While the fossil fuel industry argues that these subsidies are necessary to promote economic growth and job creation, critics argue that they are simply a waste of taxpayer money that could be better spent on renewable energy sources, such as solar and wind power. In fact, studies have shown that government support for fossil fuels far outweighs support for renewable energy, despite the urgent need to transition to cleaner sources of energy to combat climate change.


The fossil fuel industry also receives indirect subsidies in the form of environmental and health costs that are not factored into the price of fossil fuels. For example, burning coal for electricity generation produces air pollution that can lead to respiratory problems and other health issues, costing taxpayers billions of dollars in healthcare expenses each year.

In addition to the environmental and health costs associated with fossil fuels, the industry also benefits from government policies that prioritize fossil fuel extraction and production over renewable energy development. For example, the Trump administration has rolled back regulations on coal mining and drilling for oil and gas on public lands, making it easier for fossil fuel companies to exploit these resources.


As U.S. taxpayers continue to subsidize the fossil fuel industry, it is clear that a change is needed. By shifting subsidies away from fossil fuels and towards renewable energy sources, the government can help accelerate the transition to a low-carbon economy and create new jobs in the clean energy sector. It is time for policymakers to take action and end the wasteful subsidies that have been propping up the fossil fuel industry for over a century.


Advertisement

Share by: