Existing trade agreements have strict rules, some enforcement mechanisms, and the majority of the world's nations already as signatories. They offer a potentially powerful leverage point to address a wide array of subsidies to energy, including those flowing to fossil fuels. In practice, the trade…
PJM Interconnection is the regional transmission operator (RTO) serving more than 60 million customers in 13 states and the District of Columbia, mostly in the mid-Atlantic region of the United States. Incumbent base load generators have complained that subsidies to renewable resources have been…
Alex Doukas, Shakuntala Makhijani, and Janet Redman
Posted on:
5/31/2017
The federal government of the United States remains custodian and manager of a large amount of fossil fuels on public lands. While sales of minerals do bring in some revenue to the government, there are many elements of federal management that result in artificially low realized revenues for…
Shelagh Whitley, Laurie van der Burg, Leah Worrall and Sejal Patel
Posted on:
5/31/2017
Subsidies to coal in 10 countries responsible for 84% of Europe’s energy-related greenhouse gas emissions remain extensive. These include France, the Czech Republic, Germany, Greece, Italy, Hungary, the Netherlands, Poland, Spain and the United Kingdom (UK).
Within the United States, the cost of energy subsidies to taxpayers is both substantial and often not properly documented. Regular review to evaluate the fiscal costs of these policies; their impact on market structure, competiveness, and environmental quality; and their ability to achieve stated…
This presentation provides an overview of the long history of fossil fuel subsidies in the United States, key milestones in reporting transparency, and remaining data challenges in assessing and quantifying the many pathways that continue to subsidize fossil fuel extraction and consumption today.
This book proposes a simple framework for understanding the political economy of subsidy reform and applies it to four in-depth country studies covering more than 30 distinct episodes of reform. Five key lessons emerge. First, energy subsidies often follow a life cycle, beginning as a way to…
This article provides a review of global energy subsidies—of definitions and estimation techniques, their type and scope, their drawbacks, and effective ways to reform them. Based on an assessment of both policy reports and peer-reviewed studies, this article presents evidence that energy subsidies…
Peter Erickson, Adrian Down, Michael Lazarus, and Doug Koplow
Posted on:
1/9/2017
The United States now produces as much crude oil as ever – over 3.4 billion barrels in 2015, just shy of the 3.5 billion record set in 1970. Indeed, the U.S. has become the world’s No. 1 oil and gas producer. The oil production boom has been aided by tax provisions and other subsidies that support…
Main Authors: Mycle Schneider and Antony Froggatt; Other contributors: Julie Hazemann, Tadahiro Katsuta, M.V. Ramana, Ian Fairlie, Fulcieri Maltini, and Steve Thomas
Posted on:
8/12/2016
The World Nuclear Industry Status Report 2016 (WNISR) provides a comprehensive overview of nuclear power plant data, including information on operation, production and construction. The WNISR assesses the status of new-build programs in current nuclear countries as well as in potential newcomer…
Jayni Foley Hein, Ben Snow, Sean Stefanik, and Lauren Webb
Posted on:
8/10/2016
Federal law requires coal companies to reclaim and restore land and water resources that have been degraded by mining. But at many sites, reclamation occurs slowly, if it all. Mining companies are required to post performance bonds to ensure the successful completion of reclamation efforts should…
Mark Fulton, Doug Koplow, Reid Capalino, Andrew Grant
Posted on:
8/1/2016
In January 2016 the US Secretary of the Interior announced a moratorium on new coal leasing on public lands pending completion of a comprehensive review. Nearly 90% of coal produced from public lands is from leases in the Powder River Basin (PRB) of Wyoming and Montana.
Although nuclear power is a source of low carbon electricity, it is by no means a clear solution to the challenge we face in reducting greenhouse gas emissions. This presentation discusses common metrics to assess the most cost-efficient source of ghg emissions and reviews multiple studies…
The steep decline in the world oil price in the last quarter of 2014 slashed fuel price subsidies. Several governments responded by announcing that they would remove subsidies for one or more fuels and move to market-based pricing with full cost recovery. Other governments took advantage of low…
Understanding who benefits from fuel price subsidies and the welfare impact of increasing fuel prices is key to designing, and gaining public support for, subsidy reform. This paper updates evidence for developing countries on the magnitude of the welfare impact of subsidy reform and its…
The US coal industry faces not just overcapacity but crippling liabilities that will outlive mine closures. Setting the industry on a viable course will require all stakeholders to step up with new ideas.
This report examines the decline in demand for US coal and the industry rationalization that…
This report aims to illuminate some of the hidden costs of coal production, which Interior should account for in order to modernize the federal coal program and earn a more fair return. If Interior had used a higher royalty rate that accounts for even a fraction of the public costs of mining, it…
Elizabeth Bast, Alex Doukas, Sam Pickard, Laurie van der Burg and Shelagh Whitley
Posted on:
11/13/2015
G20 country governments are providing $452 billion a year in subsidies for the production of fossil fuels. Their continued support for fossil fuel production marries bad economics with potentially disastrous consequences for the climate. In effect, governments are propping up the production of…
Jehan Sauvage, project manager; Franck Jésus and Ronald Steenblik, project supervisors
Posted on:
10/2/2015
The combustion of fossil fuels is a leading contributor to climate change, and many countries have already taken steps to reduce their emissions of CO2 and other pollutants. Some policies remain, however, that encourage more production and use of fossil fuels than would otherwise be the case. In so…
Mark Fulton, Tim Buckley, Doug Koplow, Luke Sussams, and Andrew Grant
Posted on:
9/25/2015
There has been much discussion of fossil fuel subsidies as both an inefficient use of public tax dollars and a barrier to the scaling up of low- and no-carbon energy sources. As "green" incentives are reduced, the phase-out of fossil fuel subsidies becomes even more urgent in order to reduce market…