Energy Subsidies Laser Talk

Citizens’ Climate Lobby supports the elimination of all energy subsidies once we have begun to correct the underpricing of fossil-based fuels [1].

Fossil fuels subsidies from 2002-2008 exceeded subsidies to “renewable” projects by a factor of 5:1 [2]. Over the next ten years, there are over $158 billion in potential fossil fuel subsidies (about equal to a $2.75 per ton of CO2 carbon tax [3]).

If the market could decide, it would pick renewables. We should free it.

Additional information: the value of $2.75 was calculated by dividing the 10-year cost of fossil fuel subsidies by 10 to find the annual cost, then using the Carbon Tax Center spreadsheet to calculate what carbon price yields a total tax take equivalent to that amount.

Skeptic Claims and One-Liners

Carbon Fee Skeptic Claim: Solyndra!
One-Liner: Because total financial subsidies to fossil fuel industries outnumber those to renewable energy 5:1, we support the elimination of all energy subsidies and letting the market decide.

  1. Citizens’ Climate Lobby. “CCL draft legislation for Carbon Fee and Dividend.”
  2. Energy Subsidies Favor Fossil Fuels Over Renewables.Last accessed: 5-19-13. Environmental Law Institute.
  3. Charles Komanoff. 4-sector National Carbon Tax Model. The Carbon Tax Center, 2011.