How Fossil Fuel Subsidies Affect the Environment - Doug Koplow

Climate Money Watchdog

Doug founded Earth Track to more effectively integrate information on energy subsidies. For the past three decades, he has written extensively on natural resource subsidies for organizations such as the International Institute for Sustainable Development, the Organization for Economic Cooperation and Development, United Nations Environment Programme (UNEP), Sierra Club, the Natural Resources Defense Council, and the Stockholm Environment Institute. He has analyzed scores of government programs and made important developments in subsidy valuation techniques. He has provided input on subsidy reform legislation, served as a peer reviewer on subsidy papers from all over the world, and has published his own work in major journals and as book chapters. In recent years, his work has focused on subsidies to fossil fuels, nuclear power, and the impact of multi-sector natural resource subsidies on biodiversity and critical habitats.

Working collaboratively with other organizations, Earth Track focuses on ways to more effectively align the incentives of key stakeholder groups and to leverage market forces to help address complex environmental challenges.

He holds an MBA from the Harvard Business School and a BA in economics from Wesleyan University.

Topics Discussed Include:

• Government subsidies - why they are important to think about as we try to decarbonize our economy.
• How oil and gas subsides work in general and why they are outdated and harmful to climate goals.
• How taxpayers’ subsidies distort the market for oil and gas produced in Permian Basin.
• The role of different levels of government in supporting oil and gas and whether there are specific challenges trying to reform state-level policies.
• How some subsides were passed in the 1920s when oil extraction was a new industry and haven’t been changed to match the times.
• How three quarters of the subsides support exploration and production, potentially creating a disincentive to phasing out fossil fuel energy.
• How transparency of information on costs and how is paid is often lacking
• Particularly egregious subsidies in the federal realm, in Texas, and New Mexico.
• Examples of federal and state regulations and environmental exemptions that allow the fossil fuel production pollution to walk away from their production pollution and how that is affecting the Permian Basin’s environment for the people.

Further Reading:

· The High Cost Well subsidy

· The Good Jobs First organization

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