Subsidies and tax breaks are a tried and true way of helping a
developing industry get up on its feet. One of the strategies to
accelerate a transition to cleaner greener renewable energy
sources is to subsidize research development, and production of
renewable energy sources, such as wind power, solar power,
geothermal, etc. Free market advocates often say that the
emerging renewable energy industry should not be subsidized.
What is not widely know though, is that subsidies for well
established fossil fuels exceed renewables by almost six to one.
Research by the Woodrow Wilson International Center for Scholars
and the Environmental Law Institute reveals that the lion’s
share of energy subsidies supported energy sources that emit
high levels of greenhouse gases (GHGs). The study, which
reviewed fossil fuel and energy subsidies for Fiscal Years
2002-2008, showed that the federal government spent about $70
billion on the fossil fuel industry, and about $12 billion on
renewables. As the report points out: Moreov