• Set rules for economic and other activity in marketplace: • Who bears risk and to what degree. [...] Overview Government as a Factor of Production • “Political entrepreneurship” leverages the power of government to access additional resources, improve the terms of access, or create a market advantage (disadvantage) for your (your competitor’s) activity. [...] • Politically-allocated • Often flow to the powerful, who invest to keep and expand them. [...] • Whack-a-mole: many forms and sources, at all levels of government • Hard to see, track and value, challenge and reform. [...] • At 2019 prices, subsidies boost P average rate of return by 68%.2019avg P • At lower 2020 prices, and higher 2020avg hurdle rate, 74% of new NG subsidy-dependent.
Authors
- Pages
- 17
- Published in
- United States of America
Table of Contents
- Slide 1: An Introduction to Energy Subsidies 1
- Slide 2: Overview Most Government Actions Are Subsidies; Only Some Subsidies are a Problem 2
- Slide 3: Overview Everybody Wants Special Benefits from Government 3
- Slide 4: Overview Government as a Factor of Production 4
- Slide 5: Overview Why Subsidies Matter 5
- Slide 6: Overview Many Mechanisms Used to Transfer Value 6
- Slide 7: Benefits of Reform Subsidies and Carbon Taxes: Stop Digging 7
- Slide 8: Benefits of Reform Limited Public Funds Diverted from Better Uses 8
- Slide 9: Subsidy Measurement Primary Sources of Global Data on FFS* 9
- Slide 10: Subsidy Measurement - Global IMF Estimates – Externalities, Imputed Taxes Dominate 10
- Slide 11: Subsidy Measurement – United States Numerical Friction: Scope, Definitions, Valuation 11
- Slide 12: Subsidy Patterns – United States Boosting Profits in US Oil 12
- Slide 13: Subsidy Patterns – United States US NG: Substantial Reserves Subsidy-Dependent 13
- Slide 14: Subsidy Patterns – A Colorado Example O&G Well Plugging Bonding Shortfalls 14
- Slide 15: Subsidy Patterns – Global EHS Global EHS at Least $1.8 trillion/year; ~2% of GDP 15
- Slide 16: Subsidy Patterns – Global Multi-sector Subsidies and Biodiversity: Stop Digging 16
- Slide 17: Subsidy Reform Where are Our Leverage Points? 17
