The recent G20 summit took on the appearance of the Mad Hatter’s tea party (Alice in Wonderland) when the G7 produced a statement saying they are committed to ending “fossil fuel subsidies.” Terence Corcoran of Financial Post (here) on the fossil fuels subsidies folly.
In a sensational bit of reportorial distortion and ignorance, CBC News on Thursday reported that Canada and other G20 nations are “spending US$452-billion a year subsidizing their fossil fuel industries.”
The number comes from Oil Change International, one of scores of front organizations funded by an unholy cabal of activist U.S. foundations — Tides, Hewlitt, Oak, Rockefeller — whose billion-dollar cash pools are being mobilized to rid the world of fossil fuels and reduce the world’s population of messy people. The $452-billion was described as “shocking” by Oil Change activist Alex Doukas, especially since the objective of the Paris climate summit is to have most of the world’s oil and gas reserves “stay in the ground.”
Where Energy Subsidies Actually Go–The US Example
WHAT’S THE TRUE COST OF WIND POWER? by Randy Simmons at Newsweek
The high costs of federal subsidies and state mandates for wind power have not paid off for the American public. According to the Mercatus Center at George Mason University, wind energy receives a higher percentage of federal subsidies than any other type of energy while generating a very small percentage of the nation’s electricity.
In 2010 the wind energy sector received 42% of total federal subsidies while producing only 2% of the nation’s total electricity. By comparison, coal receives 10% of all subsidies and generates 45% and nuclear is about even at about 20%.
But policymakers at the federal and state level, unfortunately, have decided that the American people will have renewable energy, no matter how high the costs. As a result, taxpayers will be stuck paying the cost of subsidies to wealthy wind producers.
Meanwhile, electricity consumers will be forced to purchase the more expensive power that results from state-level mandates for renewable energy production. Although such policies may be well intended, the real results will be limited freedom, reduced prosperity and an increasingly unreliable power supply.
Back to Basic Terms
Climate activists and renewables lobbyists are acting like Mad Hatters, twisting language and logic to pursue their agendas. Let there be some common sense injected here.
A subsidy would be when the government takes money that has been taxed, borrowed, or printed, and pays it to some company like Solyndra to do something that the market does not support. Often these subsidies subsidize technologies that do not exist and may never exist (and they say WE ignore the laws of physics.)
In contrast, a tax reduction is NOT a subsidy. A tax credit says an industry gets to keep more of its own money that it has produced selling a product people want and need in the free market.
There is a huge difference between a law that lets you keep more of your own money; and another law that actually gives you someone else’s money. The two are not the same thing. Actually, the oil industry pays higher taxation rates than other industries and subsidizes the government with the billions it pays in taxes, not the other way around.
There are also billions more in economic benefit to the nation from the jobs they create and the increased mobility and productivity people enjoy by using our transportation system based on hydrocarbon fuels.
The Mad Hatters turn things upside down. Society is subsidized and made wealthy by fossil fuels, not the other way around. Some of that wealth is being diverted to renewable energy companies who do not create enough value to be in business without direct payments of tax dollars. They prove it by declaring bankruptcy when their subsidies are reduced. Worse, hooking up wind and solar intermittent power to electrical grids adds more cost and unreliability than the renewable power is worth.
Read More about Energy Subsidies Abuse
The Appalling Truth About Energy Subsidies at Euan Mearns
Renewable Energy Cost Explosion: €25,000 euros for each German family of four Daniel Wetzel, Die Welt (translation by GWPF)
What’s an Oil Subsidy? Heritage Foundation
Why the Best Path to a Low-Carbon Future is Not Wind or Solar Power Brookings Institution
Killing the Energy Goose Science Matters