| Description | Mentioning the acronym Feed-in tariff (FIT) as being one of the simplest and most effective mechanisms for growing the renewable industry will generally elicit a response along the lines of “why should renewables be subsidised?” The fact is The World Bank and International Energy Agency estimate global annual subsidies for fossil fuels to be in the range of US$100-200 billion. Subsidies can take many forms: direct budgetary transfers, tax incentives, research and development (R&D) spending, liability insurance, leases, land rights of way, waste disposal and guarantees to mitigate project financing or fuel price risks. Koplow’s 1993 Report Federal Energy Subsidies Energy, Environmental and Fiscal Impacts holds true today and defines exactly what constitutes a subsidy. |
