Earth Track Document

Subsidies to conventional energy in the PJM region: An initial listing

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 cutting their ability to win capacity market auctions, stripping them of revenue.  They have been proposing adjustment factors that would improve their competitive position by adjusting bid prices to exclude the subsidy. 

Earth Track Written Testimony on Federal Energy-Related Tax Policy and its Effects on Markets, Prices, and Consumers

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 goals is prudent. 

My comments focus on three main issues:

Effect of government subsidies for upstream oil infrastructure on U.S. oil production and global CO2 emissions

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 private investment in infrastructure for oil exploration and development. Federal tax preferences, for example, enable oil and gas producers to deduct capital expenditures faster, or at greater levels, than standard tax accounting rules typically allow, boosting investment returns.

Cost-Efficient Greenhouse Gas Reductions: Nuclear is No Silver Bullet

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 indicating that new reactors are an expensive option relative to alternatives, and getting more so each year.  Cost escalation, lengthening delivery times on reactor projects, and oft-ignored concerns about proliferation create significant headwinds for the nuclear pathway.  In contrast, c

A Framework for Assessing Thermal Coal Production Subsidies

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 distortions and ensure a level playing field in energy markets. Developing-world subsidies to fossil fuel consumption have attracted the most attention to date. However, fossil fuels also benefit from production subsidies in both developed and developing countries.

Subsidies to Energy Industries (2015 update)

Energy resources vary widely in terms of their capital intensity, reliance on centralized networks, environmental impacts, and energy security profiles. Although the policies of greatest import to a particular energy option may differ, their aggregate impact is significant. Subsidies to conventional fuels can slow research into emerging technologies, thereby delaying their commercialization. Subsidies and exemptions to polluting fuels reduce the incentive to develop and deploy cleaner alternatives.

Fossil Fuel Subsidies: Approaches and Valuation

Numbers ranging from half a trillion to two trillion dollars have been cited in recent years for global subsidies for fossil fuels. How are these figures calculated and why are they so different? The most commonly used methods for measuring subsidies are the price-gap approach-quantifying the gap between free-market reference prices and the prices charged to consumers-and the inventory approach, which constructs an inventory of government actions benefiting production and consumption of fossil fuels.

Global Energy Subsidies: Scale, Opportunity Costs, and Barriers to Reform

Government subsidies to energy producers, transporters, and consumers are widespread throughout the world and represent a large public investment in the energy sector. In theory, this investment could be funding a variety of social goals such as providing the poor with access to basic energy services and addressing common environmental problems linked to energy extraction and consumption.

Although some subsidies do address these types of concerns, most either do not, or do not do so effectively.