Scrutiny of State-Level Fossil Fuels Subsidies Reveals Alarming Pattern

Attributed Authors: SustainableBusiness.com News Published: Dec 2012
 

The powerful fossil fuel interests that reap huge subsidies on the federal level have been doing the very same thing on the state level in the US.

In many states, the coal, oil and natural gas industries are  among the most powerful industries, and have been benefiting from political deals for decades.

Earth Track has produced a report that makes a "first pass" at inventorying state subsidies, admitting that they probably have only scratched the surface.

"Even based on the subset of policies we have captured, it is clear that these programs have contributed to the fiscal turmoil in which so many state governments now find themselves, and to significant environmental degradation as well," they say.

In the report, A Review of Fossil Fuel Subsidies in Colorado, Kentucky, Louisiana, Oklahoma, and Wyoming, the group inventories dozens of financial breaks and loopholes that coal, oil and natural gas companies enjoy through the tax code.

These include subsidized credit and insurance, infrastructure provisions, unfunded oversight agencies, direct grants, and below-market resource sales.

Tags: state subsidies fossil fuel subsidies extraction