Renewable Energy Receives $15.6 Billion in Federal Subsidies in FY 2022
According to a recent report from the Energy Information Administration, renewable energy, primarily wind and solar, received $15.6 billion in federal government subsidies in fiscal year 2022. This amount far surpasses the subsidies received by the fossil fuel industry.
Coal, Natural Gas, and Petroleum Liquids Receive Subsidies
The coal industry received $873 million in subsidies, while the natural gas and petroleum liquids industry received $2.3 billion. These figures highlight the disparity between renewable energy and fossil fuels in terms of government support.
Debate Over Renewable Energy Subsidies
Critics argue that the billions of dollars in subsidies for renewable energy allow them to appear more affordable by offsetting their costs through government spending. On the other hand, advocates claim that transitioning from subsidizing fossil fuels to renewables is necessary for a cleaner form of energy.
Renewable Energy Subsidies from 2018-2022
From 2018 through 2022, renewable energy received a total of $69.3 billion in federal subsidies, compared to $10.8 billion for coal over the same five-year period. This indicates a significant shift in government support towards renewable energy sources.
The Impact of Energy Subsidies
According to Paige Lambermont, a research fellow for the Competitive Enterprise Institute, energy subsidies distort the market by favoring less reliable renewable energy over more reliable sources like natural gas, coal, and nuclear. These subsidies also discourage the construction and maintenance of reliable energy sources.
The Inflation Reduction Act and Future Subsidies
Dan Kish, a senior fellow at the Institute for Energy Research, predicts an increase in federal subsidies for renewable energy following the passing of President Joe Biden’s Inflation Reduction Act in August 2022. This act is expected to provide even greater support for renewable energy.
The White House’s Statement
The White House stated that the Inflation Reduction Act includes nearly $11 billion “to build clean, affordable and reliable energy.” This further highlights the government’s commitment to promoting renewable energy sources.
Renewable Energy Advancements
The president and CEO of the American Council on Renewable Energy, Gregory Wetstone, emphasized the long-term incentives for renewable energy, domestic clean energy manufacturing, and grid technologies included in the Inflation Reduction Act. He believes that these investments will lead to job creation, cost savings, and progress towards a more stable climate.
The United Nations’ Perspective
The United Nations supports shifting subsidies from fossil fuels to renewable energy, stating that fossil fuel subsidies are hindering the world’s transition to renewable energy. They argue that redirecting subsidies would not only Reduce Emissions but also contribute to economic growth, job creation, public health, and equality.
Read More of this Story at www.washingtonexaminer.com – 2023-10-17 12:02:00
Read More US Economic News