Federal incentives for energy development

Abstract

This paper identifies and quantifies the incentives utilized by the Federal government to encourage the development of U.S. energy resources over the past half century. The incentives granted to the six major conventional sources of energy—nuclear energy, hydropower, coal, oil, natural gas, electricity—are categorized according to eight general types: creation (prohibition) of organizations, taxation, fees, disbursements, requirements, traditional government services, non-traditional government services, and market activity. It is found that through the fiscal year 1977 the Federal government has expended $211 billion for incentives to encourage energy resource development. These incentives were distributed in the following manner: commercial nuclear power, $18 billion; hydropower, $15 billion; coal, $10 billion; oil, $101 billion; natural gas, $16 billion; electricity transmission/distribution, $70 billion. The implications of these findings are discussed briefly.