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According to the EIA in 2016, the most recent year for which complete data is available, the federal government spent just shy of $14 billion in energy subsidies and support. Subsidies for renewable energy totaled $6.682 billion, while those for fossil energy totaled a mere $489 million.
According to the EIA in 2016, the most recent year for which complete data is available, the federal government spent just shy of $14 billion in energy subsidies and support. Subsidies for renewable energy totaled $6.682 billion, while those for fossil energy totaled a mere $489 million.
In the U.S. alone in 2016, $18.4 billion was spent on energy subsidies. $11 billion of that went to renewable energy and $3 billion to energy efficiency.
Conservative estimates put U.S. direct subsidies to the fossil fuel industry at roughly $20 billion per year. With 20 percent currently allocated to coal and 80 percent to natural gas and crude oil. European Union subsidies are estimated to total 55 billion euros annually.
The IMF estimates that annual energy subsidies in Australia total $29 billion, representing 2.3 per cent of Australian GDP.
The econometric analysis reveals a positive correlation between subsidies and the production of incentivized energy, as well as the installed capacity. Overall, the analysis shows that these policies have been effective in promoting renewable energy, both in the short and in the long run.
In the United States, the federal government has paid US$145 billion for energy subsidies to support R&D for nuclear power ($85 billion) and fossil fuels ($60 billion) from 1950 to 2016. During this same timeframe, renewable energy technologies received a total of US $34 billion.
The budget contains many subsidies that aid some businesses at the expense of taxpayers and the overall economy. The government spends about $100 billion annually on corporate welfare, according to a 2012 Cato study. That amount includes direct grants and loans to companies, as well as indirect aid for industries.
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