Archived Abstracts

A Historical and Economic Assessment of Fuel Subsidies

Student Author Information

Evan Cobey, University of LynchburgFollow

Location

Memorial Ballroom, Hall Campus Center

Access Type

Open Access

Entry Number

27

Start Date

4-8-2020 12:00 PM

End Date

4-8-2020 1:15 PM

Department

Environmental Science

Abstract

Renewable sources of energy remove dependence on nonrenewable sources. When renewable sources are adopted, they relieve the environment of damages to the environment from burning fossil fuels. Currently, nonrenewable energy is cheaper to produce causing innovations in renewable energy to struggle to increase in economic viability. In the United States, nonrenewable energy receives heavy subsidies, sometimes coming from donations by fuel company owners to politicians during their campaigns keeping renewable energy in the periphery. This research explores the effects on economics and the environment caused by subsidizing nonrenewable energy. It identifies methods of decreasing the subsidies to nonrenewable energy to mitigate these effects. American actions are compared with other countries and successful methods are highlighted as means of decreasing fossil fuel subsidization.

Findings include governments and their citizens lose money when the decision is made to subsidize nonrenewable energy. While subsidization initially makes nonrenewable cheaper, its use induces medical expenses for citizens incurred from smoke, and damage to the environment, that are not factored into original costs. When these costs are factored in, they exponentially outweigh those of renewable energy. Nonrenewable energy subsidization is also found to be inefficient because citizens lose money through paying government collected taxes to cover the cost of the subsidies. Figures make clear that a switch from nonrenewable to renewable energy will save the world staggering amounts for expenses that would have been paid for the damages caused by climate change. Job creation will also result from a growing renewable energy sector.

Faculty Mentor(s)

Dr. Laura Henry-Stone
Dr. Jennifer Styrsky
Dr. Beth Savage.

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Apr 8th, 12:00 PM Apr 8th, 1:15 PM

A Historical and Economic Assessment of Fuel Subsidies

Memorial Ballroom, Hall Campus Center

Renewable sources of energy remove dependence on nonrenewable sources. When renewable sources are adopted, they relieve the environment of damages to the environment from burning fossil fuels. Currently, nonrenewable energy is cheaper to produce causing innovations in renewable energy to struggle to increase in economic viability. In the United States, nonrenewable energy receives heavy subsidies, sometimes coming from donations by fuel company owners to politicians during their campaigns keeping renewable energy in the periphery. This research explores the effects on economics and the environment caused by subsidizing nonrenewable energy. It identifies methods of decreasing the subsidies to nonrenewable energy to mitigate these effects. American actions are compared with other countries and successful methods are highlighted as means of decreasing fossil fuel subsidization.

Findings include governments and their citizens lose money when the decision is made to subsidize nonrenewable energy. While subsidization initially makes nonrenewable cheaper, its use induces medical expenses for citizens incurred from smoke, and damage to the environment, that are not factored into original costs. When these costs are factored in, they exponentially outweigh those of renewable energy. Nonrenewable energy subsidization is also found to be inefficient because citizens lose money through paying government collected taxes to cover the cost of the subsidies. Figures make clear that a switch from nonrenewable to renewable energy will save the world staggering amounts for expenses that would have been paid for the damages caused by climate change. Job creation will also result from a growing renewable energy sector.