This memo evaluates three tax subsidies to nuclear power contained in the American Power Act (APA): 5-year accelerated depreciation for reactors; a 10% investment tax credit; and an expansion of a production tax credit for nuclear. The draft Act was floated by Senators John Kerry (D-MA) and Joseph Lieberman (I-CT) in May 2010. Subsidy costs were evaluated using prototype AP1000 and Areva EPR reactor characteristics, and a range of values for cost of capital.
Publication or article
Through its focus on incentives for the coal industry, this document provides one of the best summaries we've seen on subsidies to coal gasification, Integrated Gasification Combined Cycle (IGCC) technology, and associated carbon capture and storage (CCS) methods. Of particular merit are the state-by-state summaries of coal-supportive programs and policies. As the document was published four years ago, some program may have changed; however, the normal duration of subsidy policies suggests the vast majority remain in effect.
Subsidies for biofuels in the United States have reached levels unimagined when support for an "infant industry" began in the late 1970s. Today, the infant has grown into a strapping behemoth with a powerful sense of entitlement and an insatiable appetite for ethanol's primary feedstock: corn. In 2009, the U.S. Department of Agriculture reported a record corn harvest of 13.2 billion bushels, 9 percent larger than the harvest of 2008.
One way to correct market failures is tax shifting -- raising taxes on activities that harm the environment so that their prices begin to reflect their true cost and offsetting this with a reduction in income taxes. A complementary way to achieve this goal is subsidy shifting. Each year the world's taxpayers provide at least $700 billion in subsidies for environmentally destructive activities, such as fossil fuel burning, overpumping aquifers, clearcutting forests, and overfishing.
This report summarizes the Climate Policy Initiative Workshop, hosted at DIW Berlin, that took place in November 2009.
At their meeting in Pittsburgh in September 2009, G20 Leaders called for an additional evidence base to support efforts by the member nations to reform and remove fossil fuel subsidies. At a workshop in Berlin in November 2009 we discussed the definition and quantification of energy subsidies, the evaluation of their impact, and the political economy of their reform.
Gaining Traction: The importance of transparency in accelerating the reform of fossil-fuel subsidies
An accurate picture of the level and nature of subsidization is a necessary first step towards reform. Reliable information facilitates an assessment of the subsidy's costs, distribution and impacts, and the development of effective strategies for reform. At the international level, it provides a foundation for dialogue on reform and for monitoring of progress towards de-subsidization.
The purpose of this report is to urge consistency in the development and implementation of federal administrative policies. Even as President Obama has pledged to phase out fossil fuel subsidies, the Federal Government prepares to establish limits on greenhouse gas emissions, and the Administration fosters a transition to a low carbon economy, some Federal agencies continue to have policies and programs that provide substantial subsidies for the construction, expansion, and life extension of one of the largest sources of greenhouse gas emissions in the U.S. - coal-fired power plants.
Reforming subsidies to fossil fuels is a challenging prospect for many governments. To help policy-makers better appreciate the trade-offs between economic, environmental and social impacts, various organizations have analyzed fossil-fuel subsidies and their effects, often with the aid of complex economic models.
Petroleum product subsidies have again started to rise with the rebound in international prices. This note reviews recent developments in subsidy levels and argues that it is necessary to reform the policy framework for setting petroleum product prices in order to reduce the fiscal burden of these subsidies and to address climate change. In 2003, global consumer subsidies for petroleum products totaled nearly $60 billion. They are projected to reach almost $250 billion in 2010.