Navigation Links
US tax breaks subsidize foreign oil production
Date:9/18/2009

(Washington) The largest U.S subsidies to fossil fuels are attributed to tax breaks that aid foreign oil production, according to research to be released on Friday by the Environmental Law Institute (ELI) in partnership with the Woodrow Wilson International Center for Scholars. The study, which reviewed fossil fuel and energy subsidies for Fiscal Years 2002-2008, reveals that the lion's share of energy subsidies supported energy sources that emit high levels of greenhouse gases.

The research demonstrates that the federal government provided substantially larger subsidies to fossil fuels than to renewables. Fossil fuels benefited from approximately $72 billion over the seven-year period, while subsidies for renewable fuels totaled only $29 billion. More than half the subsidies for renewables$16.8 billionare attributable to corn-based ethanol, the climate effects of which are hotly disputed. Of the fossil fuel subsidies, $70.2 billion went to traditional sourcessuch as coal and oiland $2.3 billion went to carbon capture and storage, which is designed to reduce greenhouse gas emissions from coal-fired power plants. Thus, energy subsidies highly favored energy sources that emit high levels of greenhouse gases over sources that would decrease our climate footprint.

The U.S. energy market is shaped by a number of national and state policies that encourage the use of traditional energy sources. These policies range from royalty relief to the provision of tax incentives, direct payments, and other forms of support to the non-renewable energy industry. "The combination of subsidiesor 'perverse incentives' to develop fossil fuel energy sources, and a lack of sufficient incentives to develop renewable energy and promote energy efficiency, distorts energy policy in ways that have helped cause, and continue to exacerbate, our climate change problem," notes ELI Senior Attorney John Pendergrass. "With climate change and energy legislation pending on Capitol Hill, our research suggests that more attention needs to be given to the existing perverse incentives for 'dirty' fuels in the U.S. Tax Code."

The subsidies examined fall roughly into two categories: (1) foregone revenues (changes to the tax code to reduce the tax liabilities of particular entities), mostly in the form of tax breaks, and including reported lost government take from offshore leasing of oil and gas fields; and (2) direct spending, in the form of expenditures on research and development and other programs. Subsidies attributed to the Foreign Tax Credit totaled $15.3 billion, with those for the next-largest fossil fuel subsidy, the Credit for Production of Nonconventional Fuels, totaling $14.1 billion. The Foreign Tax Credit applies to the overseas production of oil through an obscure provision of the U.S. Tax Code, which allows energy companies to claim a tax credit for payments that would normally receive less-beneficial treatment under the tax code.

ELI researchers applied the conventional definitions of fossil fuels and renewable energy. Fossil fuels include petroleum and its byproducts, natural gas, and coal products, while renewable fuels include wind, solar, biofuels and biomass, hydropower, and geothermal energy production. A graphic chart that will be released on Friday presents general conclusions about the overall subsidies for fossil fuels versus renewables other than corn-derived ethanol. Nuclear energy, which also falls outside the operating definition of fossil and renewable fuels, was not included.


'/>"/>

Contact: Brett Kitchen
202-939-3833
Project on Emerging Nanotechnologies
Source:Eurekalert

Related biology news :

1. Fowl soil additive breaks down crude oil
2. Hidden infections crucial to understanding, controlling disease outbreaks
3. Book breaks new ground in the study of economics and forest threats management
4. Scientists use remote satellite imaging to predict outbreaks of infectious disease
5. Lab study shows methadone breaks resistance in untreatable forms of leukemia
6. Fishing ban guards coral reefs against predatory starfish outbreaks
7. Fungi the cause of many outbreaks of disease but mostly ignored
8. NASA technology helps predict and prevent future pandemic outbreaks
9. Advice to the new administration: UM foreign and domestic policy guide
10. A common aquatic animals genome can capture foreign DNA
11. Composted dairy manure in foliage plant production
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:1/28/2016)... 28, 2016 Synaptics (NASDAQ: SYNA ), a leading ... second quarter ended December 31, 2015. --> ... fiscal 2016 increased 2 percent compared to the comparable quarter last ... fiscal 2016 was $35.0 million, or $0.93 per diluted share. ... for the first quarter of fiscal 2016 grew 9 percent over ...
(Date:1/22/2016)... 2016 http://www.researchandmarkets.com/research/4lmf2s/global_behavioral ... the  "Global Behavioral Biometric Market 2016-2020" ... http://www.researchandmarkets.com/research/4lmf2s/global_behavioral ) has announced the ... Market 2016-2020"  report to their offering. ... http://www.researchandmarkets.com/research/4lmf2s/global_behavioral ) has announced the addition ...
(Date:1/20/2016)... 2016   MedNet Solutions , an innovative SaaS-based ... clinical research, is pleased to announce the attainment of ... the result of the company,s laser focus on (and ... , it,s comprehensive, easy-to-use and highly affordable cloud-based technology ... Key MedNet growth achievements in 2015 include: ...
Breaking Biology News(10 mins):
(Date:2/4/2016)... NEW YORK , February 4, 2016 ... (OTCQB: QBIO), a biotechnology acceleration company is pleased to provide ... --> --> Over the last 3 months ... note and securities purchase agreements exceeding $1,000,000. As a result, ... under our Mannin Research Inc. license agreement and expect that ...
(Date:2/4/2016)... , Feb. 4, 2016  Spherix Incorporated (Nasdaq: ... the fostering and monetization of intellectual property, today provided ... Uniden in the Northern District of Texas ... forward.  Inter Partes Re-examination ("IPR") ... Patent Office.  The IPR was initiated on only certain ...
(Date:2/4/2016)... (PRWEB) , ... February 04, 2016 , ... ... (AI) and leading supplier of Semantic Graph Database technology has been recognized As ... Products ” by Corporate America Magazine. , “At Corporate America, it’s our priority ...
(Date:2/4/2016)... ... February 04, 2016 , ... Many of the engineers at FireflySci, Inc. have ... sets them apart from other cuvette manufacturers is their supercharged customer service and their ... top of this steady flow of inside information, they have recently revamped their manufacturing ...
Breaking Biology Technology: