Fossil Fuel Subsidies Dwarf Support for Renewables
Fossil fuels are the backbone of economies worldwide, so governments spend a lot to support them. A new report from Bloomberg New Energy Finance says altogether governments spent between $43 anf $46 billion on renewable energy and biofuels last year, not including indirect support, such as subsidies to corn farmers that help ethanol production. Direct subsidies of fossil fuels came to $557 billion, the report says.
This disparity raises the question–if the report is right and fossil fuels require so much backing, can they compete with renewables without government support? After all, some renewables–such as sugarcane based biofuels and some wind farms–can already compete with fossil fuels. Without the huge government subsidies for fossil fuels, wouldn’t they be eclipsed by renewables?
The answer, for now, is no. So far renewables just can’t provide enough fuel and power to displace fossil fuels. The infrastructure to make and distribute them isn’t adequate, and many renewables have shortcomings that can make them difficult to work with–solar panels, for example, only generate electricity when the sun is out. If the fossil fuel subsidies disappear, gasoline and electricity prices will increase. That will help renewables compete, and increase in scale, but it will take years–likely decades–for them to reach levels high enough to replace all fossil fuels.
Keep Reading
Most Popular
What to know about this autumn’s covid vaccines
New variants will pose a challenge, but early signs suggest the shots will still boost antibody responses.
DeepMind’s cofounder: Generative AI is just a phase. What’s next is interactive AI.
“This is a profound moment in the history of technology,” says Mustafa Suleyman.
Human-plus-AI solutions mitigate security threats
With the right human oversight, emerging technologies like artificial intelligence can help keep business and customer data secure
Next slide, please: A brief history of the corporate presentation
From million-dollar slide shows to Steve Jobs’s introduction of the iPhone, a bit of show business never hurt plain old business.
Stay connected
Get the latest updates from
MIT Technology Review
Discover special offers, top stories, upcoming events, and more.