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In comparing current support for renewable energy with past aid for todays traditional energy sources, the report focuses on two types of assistance: funding during the first 15 years of support and annualized expenditures over the life of the energy source.
The first 15 years, the report says, are critical to developing new technologies. It finds that oil and gas subsidies, including tax breaks and government spending, were about five times as much as aid to renewables during their first 15 years of development; nuclear received 10 times as much support.
Federal support during the first 15 years works out to $3.3 billion annually for nuclear energy and $1.8 billion annually for oil and gas, but an average of only $400 million a year in inflation-adjusted dollars for renewables.
For coal, which generates half the nations electricity, the authors were unable to quantify government support for the first 15 years, which includes federal and state aid. Coal, Pfund notes, benefits from a host of centuries-old programs that signal a rich history of aid, which is intertwined with the development of the nation. The aid runs deep and comes in many formsstate and federal tax breaks for mining and use; technological support for mining and exploration; national resource maps to encourage exploration and development; tariffs on foreign coal; and aid to steel smelters, railroads, and other industries that burn coal to encourage greater use and develop a steady market for coal.
It has been a long heyday for coal, she says, describing states and workers vying for jobs and business.
Pfund and Healey also found that some types of government supportparticularly tax breaksdont go away because they are embedded in the tax code.
These subsidies have been huge, and they are the gift that keeps on giving for many energy sources, Pfund says. Temporary tax incentives intended to spur exploration or development of fossil fuels have become a permanent part of the countrys economic system, Pfund notes.
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