energy

How Much Would Ending Fossil Fuel Subsidies Help Renewable Energy?

A recent policy platform has called for an end to fossil fuel subsidies and extension of renewable energy subsidies, but ignores the reality that renewable energy already claims 43 percent of energy subsidies compared to 11 percent for fossil fuel.

Estimates of the magnitude of fossil fuel subsidies can be misleading, since they may include the estimated costs of non-budgetary externalities or non-energy specific subsidies that cannot be eliminated within energy policy.

If energy subsidies are given, they should be awarded based on policy goals, not simply given to specific energy sources; the market is far better at picking winners and losers than politicians.

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