How Much Is Energy Subsidized?

In “How Much Is Energy Subsidized?” James explores how such a seemingly simple question has produced answers from reputable government, academic and industry organizations ranging from trillions of dollars annually to zero. In part, the widespread numbers are a matter of definitions — what does the term “energy subsidy” mean? — and James walks through the various calculations. However, the responses also reveal differences in what people are talking about when they talk about subsidy.

Liberally quoting British author George Orwell, James discusses the legal, economic and political motivations of those who would defend, improve or eliminate the use of incentives. The article concludes with his Energy Policy Palette. By grouping and distinguishing taxes, grants, tariffs and “boons”— benefits provided by the state below market value — he encourages people with different definitions to communicate better with one another at a critical time for energy transition.

James’s new article on energy policy supplements his 2018 work on energy facts, Numeracy for Energy and Environmental Lawyers . Download his latest article “How Much Is Energy Subsidized?” here.