An Introduction to Energy Subsidies - Aspen U Speaker Series Aspen, CO

• 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.