Thursday, November 20, 2014
Fossil Fuels With $550 Billion Subsidies Hurt Renewables
According to the International Energy Agency, fossil fuels are reaping $550 billion a year in subsidies, which is holding back investment in clean energy. While wind, solar, and biofuels received a $120 billion payout, oil, coal, and gas received more than four times that. These huge subsidies are giving the incentive to consume more and more of these harmful forms of energy. That basically means that we are continuing to pay to pollute the world, when we could be using that money on the clean forms of energy that I have already mentioned earlier. Renewable resources will account for about half of the global increase in power generation to 2040 due to the outcome of the government subsidies. While these subsidies will basically stay the same, wind and solar capacity is projected to grow up to six times of what it is currently at now, which shows that their economics are greatly improving. It is reported that globally, wind power will take more than a third of the growth in clean power; hydropower accounts for about 30 percent, and solar 18 percent.
These $550 billion fossil fuel subsidies are another example of how subsidies can be harmful, not just to the rich or the poor, but also to the world environment. The policy is in need of a shift to clean energy because the world’s temperature is on pace to rise by 3.6 degrees Celsius by the end of the century. This means an increase in sea levels, damaging storms, and drought, according to the International Energy Agency. These subsidies are putting people at a great risk years down the road if we continue to depend so heavily on fossil fuels, instead of going in the direction of clean energy. From class we know that subsidies are granted to assist an industry so the cost can remain low and competitive, but this is definitely a subsidy that will be doing much more harm than good in the long-run.
http://www.bloomberg.com/news/2014-11-12/fossil-fuels-with-550-billion-in-subsidy-hurt-renewables.html
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I think one of the real appeals of clean energy is that it will reduce The United States' dependency on foreign energy sources. Not only does this help national security but it can also help to stimulate the US economy. A report by the Union of Concern Scientists states that a twenty-five percent renewable energy standard by 2025 could potentially lead to the creation of 200,000 new jobs along with "263.4 billion in new capital investment for renewable energy technologies, $13.5 billion in new landowner income biomass production and/or wind land lease payments, and $11.5 billion in new property tax revenue for local communities." These are some serious gains that should not be ignored.
ReplyDeleteI agree with your post. Having subsidies in fossil fuels will increase the supply and demand in those, and it is harmful and unethical for our environment. It will increase some serious problems like global warming. Moving from fossil fuels to clean fuels is urgent and necessary for long term benefits. It not only helps the environment but also creates more jobs, mentioned in your article. However, recently, fossil fuels are still a very competitive market, and we cannot change to renewable energy instantly. Therefore, having subsidies in fossil fuels is understandable in short term if we do not want to lose our revenue in world market.
ReplyDeleteThe problem with using "Clean Energy" sources is that often times they are unreliable or unsustainable; case in point, electric plug in vehicles. While the idea of these vehicles seems great, according to Steve Roelles, former CEO of Johnson Controls, Europe will see the overarching use of turbo bio diesel in the coming decade and an extension of this technology into the U.S. market shortly thereafter. This is because the cost of manufacturing sustainable battery packs far out weighs the production of bio diesel combustion engines, not to mention the infrastructure already in place to aid this growth. Until we find competitive and sustainable sources of "Clean Energy" you will see the extended use of fossil fuels as a source of power.
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