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source-library/fossil_fuels/subsidies.md
2020-05-28 21:40:14 -04:00

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## Subsidies
#### Fossil fuel subsidies uphold and enable the fossil fuel industry to carry out large-scale pollution
* [Roosevelt Institute 19](https://rooseveltinstitute.org/wp-content/uploads/2019/06/GND_policy-brief-fossil-fuel-subsidies.pdf) (additional sources referenced)
* The US government spends approximately **$20.5 billion** subsidizing the fossil fuel industry <sup>[1]</sup>
* $14.7 billion federal subsidies
* $5.8 billion state subsidies
* Subsidies:
* **prop up** the existing fossil fuel sector
* drive up fossil fuel **extraction and use**
* develop **domestic fossil fuel assets**
* represent an **obstacle to renewable energy** investment by artificially increasing the relative cost of renewable energy <sup>[2]</sup>
* If we got rid of fossil fuel subsidies, **almost half of all new US oil production would be unprofitable and thus left undeveloped <sup>[3]</sup>**
* Additional sources referenced:
* [1]: [Redman 17](http://priceofoil.org/2017/10/03/dirty-energy-dominance-us-subsidies/)
* [2]: Carbon Pricing Leadership Coalition 17
* [3]: [Erickson et al. 17](https://www.nature.com/articles/s41560-017-0009-8)