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U.S. Energy Subsidies:Do They Reduce Electricity Generated CO2 Emissions?

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  • Karen Maguire

    (Oklahoma State University)

Abstract

This paper analyzes the influence of energy subsidies, Department of Energy (DOE) budget, U.S. government R&D spending on energy, and energy tax expenditures, on CO2 emissions from fossil fuels in the electricity market. The findings indicate that between 1990 and 2010 increases in DOE Outlays led to decreases in CO2 emissions from both fossil fuels generally and coal specifically; however, the magnitude of the contemporaneous effect is small. The effects varied by states, those with marginal wind potential were more strongly affected than states with significant wind resources. R&D spending did not have a contemporaneous influence on emissions.

Suggested Citation

  • Karen Maguire, 2013. "U.S. Energy Subsidies:Do They Reduce Electricity Generated CO2 Emissions?," Economics Working Paper Series 1402, Oklahoma State University, Department of Economics and Legal Studies in Business, revised Jul 2013.
    • Handle: RePEc:okl:wpaper:1402
    as

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    File URL: https://business.okstate.edu/site-files/docs/ecls-working-papers/OKSWP1402.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Energy; Subsidy; Renewable Energy; Policy;
    All these keywords.

    JEL classification:

    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies

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