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Fact Sheet: Proposals to Reduce Fossil Fuel Subsidies

Fact Sheet: Proposals to Reduce Fossil Fuel Subsidies

Full Title: Fact Sheet: Proposals to Reduce Fossil Fuel Subsidies 2024
Author(s): Molly Brind’Amour
Publisher(s): Environmental and Energy Study Insitute
Publication Date: January 6, 2024
Full Text: Download Resource
Description (excerpt):

In 2022, fossil fuel subsidies in the United States totaled $757 billion, according to the International Monetary Fund. This includes $3 billion in explicit subsidies and $754 billion in implicit subsidies, which are costs like negative health impacts and environmental degradation that are borne by society at large rather than producers (i.e., negative externalities). In fiscal year 2016 (FY 2016), the federal government’s tax revenues from natural gas and petroleum exceeded its subsidies by $1.1 billion, according to the U.S. Energy Information Administration. But by FY 2022, subsidies exceeded revenue by $2.1 billion—a net loss for the government. Federal tax subsidies for coal, meanwhile, decreased from $1.9 billion in FY 2016 to $590 million in 2022.
This fact sheet will discuss recent attempts to alter fossil fuel subsidies, including in the Biden-Harris Administration’s FY 2024 budget request (see graphic), the Inflation Reduction Act (IRA) (P.L. 117-169), the Infrastructure Investment and Jobs Act (IIJA) (P.L. 117-58), and current Congressional proposals.

All statements and/or propositions in discussion prompts are meant exclusively to stimulate discussion and do not represent the views of, its Partners, Topic Directors or Experts, nor of any individual or organization. Comments by and opinions of Expert participants are their own.

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