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Fossil Fuel vs. Non-Fossil Fuel Production and Subsidies

Fossil Fuels Dominate U.S. Energy Production, But Receive a Small Percentage of Federal Fuel Subsidies


Fossil Fuels Dominate U.S. Energy Production, But Receive a Small Percentage of Federal Fuel Subsidies At the request of the Secretary of Energy, the Energy Information Administration (EIA), an independent agency of the U.S. Department of Energy, evaluated the energy-related subsidies that the federal government provided in fiscal year 2016, updating a study that it did for fiscal years 2013 and 2010. Federal subsidies to support non-fossil fuels (renewable energy and nuclear power) in fiscal year 2016 totaled $7.047 billion (in 2016 dollars), while those for fossil fuels totaled $489 million—higher by over a factor of 14, despite much higher production by fossil fuel producers. The EIA noted that those subsidies do not include state and local subsidies, mandates, or incentives that in many cases are quite substantial, especially for renewable energy.
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