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You are here: Home / Archives for subsidies

subsidies

The benefits of agroecology

August 19, 2025 By EarthWise Leave a Comment

Exploring the benefits of agroecology

Agroecology focuses on sustainably managing agricultural systems by applying ecological principles.  The goal is to optimize the interactions between plants, animals, humans, and the environment.

A four-year study by the UK Centre for Ecology and Hydrology found that incorporating nature-friendly practices within farming increases biodiversity, pollination by bees, natural pest control, and the numbers of earthworms. 

The study compared three agricultural systems:  typical intensive agriculture, enhanced ecological farming, and maximized ecological farming.  Enhanced ecological farming involves planting wildflower field margins to provide habitat for bees, beetles, and spiders, and sowing overwinter cover crops to capture carbon and retain soil nutrients.  Optimized ecological farming adds planting in-field strips of wildflowers to attract beneficial insects and adding organic matter such as farmyard manure to improve soil health.

The ecological systems had increased populations of earthworms and pollinators, as well as natural predators of crop pests. 

The study concluded that while there are multiple benefits in terms of biodiversity, soil carbon, and crop yield when ecological farming systems are used, many farmers will be deterred from adopting agroecological farming practices and system because of the reduced profitability.  They argue that financial incentives such as subsidies are needed and are well worth it for the long-term sustainability of agriculture.

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Nature-friendly farming boosts biodiversity and yields but may require new subsidies 

Photo, posted July 27, 2023, courtesy of Judy Dean via Flickr.

Earth Wise is a production of WAMC Northeast Public Radio

Storing carbon underground and abandoned wells

April 18, 2024 By EarthWise Leave a Comment

Energy companies pushing for expansion of underground carbon storage

Using government support in the form of subsidies and tax credits, energy companies and others are planning to capture millions of tons of industrial carbon dioxide emissions and pipe the greenhouse gas into underground storage.  It is a strategy enthusiastically supported by the fossil fuel industry because it allows them to keep burning the stuff.

There are currently 69 projects being reviewed by federal and state regulators seeking to store CO2 underground.  The sorts of places where carbon dioxide can be injected are geologic zones containing porous rock formations which, in no way coincidentally, are the same places where oil and gas deposits are found.  As a result, these places are studded with abandoned wells that have accumulated over the past century.

In Louisiana, there are about 120,000 abandoned wells that overlie geological zones that could store carbon dioxide.  Environmental watchdog groups have identified numerous abandoned wells within a few miles of proposed storage sites.

The problem is that abandoned wells leak – even ones that have been plugged – and many haven’t been.  The question is how much leakage will occur and what will be the consequences of the leakage.  In Texas, pumping oilfield wastewater into abandoned wells has led to geysers of toxic water, artificial saline lakes, and earthquakes.

Underground carbon dioxide sequestering on a scale large enough to really matter will have to extend to very large areas.  For example, injecting 100 million tons per year could create a pressurized zone as large as 100 miles.  How large a problem this might create from abandoned wells in the zone is not at all clear but cannot be ignored.

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Companies Are Poised to Inject Millions of Tons of Carbon Underground. Will It Stay Put?

Photo, posted December 3, 2023, courtesy of Jason Woodhead via Flickr.

Earth Wise is a production of WAMC Northeast Public Radio

EV battery costs continue to drop

January 10, 2024 By EarthWise Leave a Comment

EV battery costs keep falling

Electric vehicles have historically been more expensive than their gas-powered counterparts primarily because of the cost of the batteries that power them.  Today’s EV battery packs range in size from about 40 kWh to as much as 200 kWh, where kWh measure the amount of energy stored in pack.

The batteries in EVs are lithium-ion batteries, the same technology used to power cell phones, tablets, and computers.  A decade ago, the batteries averaged $668 per kilowatt-hour and packs as large as those in some of today’s vehicles were simply unthinkable from a price standpoint. 

Over the years, government subsidies, increased competition, higher volume, improvements in battery technology, and reductions in the cost of raw materials such as lithium have combined to drive continuous and dramatic reductions in battery costs.  By March 2022, the average price for lithium-ion batteries was $146 per kWh.  This past August, battery costs broke the $100 per kilowatt-hour barrier.

Industry analysts have long maintained that once the $100 barrier has been reached, EVs could achieve price parity with their fossil-fuel counterparts.  Electric cars would no longer be more expensive to buy than equivalent gas cars.

Projections are that battery prices will continue to fall by something like 10% a year for the rest of this decade.  All else being equal, EVs should be cheaper to buy than gas cars.  Of course, they have already been cheaper to operate for a long time. 

None of this means that car prices will go down in general.  That will depend on trends in inflation and those are pretty hard to predict.

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EVs Set to Match Gas Guzzlers in Price as Battery Costs Plummet

Photo, posted May 9, 2018, courtesy of Flickr.

Earth Wise is a production of WAMC Northeast Public Radio

Global climate progress is too slow

December 28, 2023 By EarthWise Leave a Comment

According to a new report by the World Resources Institute, the world is making progress on climate, but the progress is not fast enough.  The report looked at 37 indicators of climate progress towards the goals set forth by the Paris Agreement.  In some areas, the progress has been substantial, but in six areas, the world has been moving in the wrong direction entirely.

The rapid growth of clean energy has brought the world to the brink of peak fossil fuels, but to avoid the catastrophic effects of warming, countries need to build out wind and solar power nearly twice as fast and shut down coal plants seven times faster.  There has been progress in curbing deforestation, but the world needs to stem forest loss four times more quickly.  More work is needed to clean up heavy industry and the consumption of meat needs to be limited more than the present level.

Areas where things are getting worse rather than better include the use of public funds and subsidies for preserving the use of fossil fuels.  Because of wars and supply shocks affecting energy markets, countries have actually ramped up fossil fuel subsidies to combat rising prices.

One area where the world is moving at the pace required to meet climate goals is in the sales of electric vehicles.  EVs accounted for 10% of car sales globally last year and if trends continue, they are predicted to account for more than 75% of cars sold by 2030.

The faster-than-predicted progress on electric cars demonstrates that transformative change is possible and could happen in other areas.

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World Making Too Little Progress on Climate — Except on EV Sales, Report Finds

Photo, posted May 24, 2022, courtesy of Ivan Radic via Flickr.

Earth Wise is a production of WAMC Northeast Public Radio

Explosive Growth Of Electric Vehicles | Earth Wise

May 25, 2023 By EarthWise Leave a Comment

Not long ago, electric cars were a rarity.  Ten years ago, annual global sales of EVs were only a few hundred thousand.  As of today, globally, still less than one percent of all the cars on the road are electric.  But that is changing rapidly.

In fact, electric vehicles are expected to capture nearly 20% of the global market this year.  Global sales of EVs were 3 million in 2020 and 6.6 million in 2021.  Last year, sales of electric vehicles hit 10 million and are expected to reach 14 million this year according to the International Energy Agency.

Analysts at the IEA have had to repeatedly revise their projections for future EV sales as the numbers keep going up faster than predicted.  Last year, they projected that EVs would account for 21% of global sales by 2030.  Now, they expect that EVs will reach 35% of sales by that year.

In the US, the EU, and China, policy efforts are in place to boost EV sales.  In the US, the Inflation Reduction Act both supports the EV industry and subsidizes consumer purchases with tax credits. As a result of such policies, the IEA expects electric vehicles to account for 60% of sales across these three large markets by 2030.

Part of what is driving the boom in EV sales is that prices continue to come down for the vehicles.  When operating and maintenance costs are figured in, the EVs come out considerably cheaper to own.  In addition, there are starting to be price wars in the EV industry as competition heats up in the sector.

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EVs to Capture One-Fifth of Global Market This Year Amid ‘Explosive Growth’

Photo, posted May 7, 2022, courtesy of Sharon Hahn Darlin via Flickr.

Earth Wise is a production of WAMC Northeast Public Radio

Falling Lithium Prices | Earth Wise

May 1, 2023 By EarthWise Leave a Comment

Producers still working out how to meet the surging demand for lithium

Lithium, the key element in the batteries that power electric cars, as well as smartphones, tablets, and laptop computers, is sometimes called white gold.  Over time, the price of the metal has gone up and up.  But recently, and surprisingly, the price of lithium has actually gone down, helping to make electric vehicles more affordable.

Over the first couple of months of this year, the price of lithium has dropped by nearly 20%.  The price of cobalt, another important component of vehicle batteries, has fallen by more than half.  Even copper, another battery material, has seen its price drop by 18%.

Many analysts predicted that prices of these commodities would stay high or even climb higher.  The reason for the decline, as well as whether it is likely to persist, is the subject of much debate.

Some experts believe that the price drops are a result of demand not being as high as expected, perhaps related to slowing sales growth of EVs in Europe and China after certain subsidies expired.  Other industry experts said that the drop was a result of new mines and processing plants providing additional supply sooner than was thought possible.

Despite the price drops, mining and processing lithium remains an extraordinarily profitable business.  It costs from $5,000 to $8,000 to produce a ton of lithium that sells for ten times that amount.  With such fat profit margins, there is no shortage of banks and investors eager to finance lithium mining and processing projects.  Such profit margins are probably not sustainable and that will likely result in more reasonable prices over time.

There is plenty of lithium in the world.  The huge demand for it is a recent phenomenon and the world is still working out how to meet that demand.

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Falling Lithium Prices Are Making Electric Cars More Affordable

Photo, posted January 9, 2023, courtesy of Phillip Pessar via Flickr.

Earth Wise is a production of WAMC Northeast Public Radio

Electric Cars Getting Cheaper | Earth Wise

April 12, 2023 By EarthWise Leave a Comment

Electric cars are getting cheaper

A sticking point for buying electric cars has always been that they are typically more expensive than equivalent gasoline-powered cars.  But increasing competition, government incentives, and falling prices for lithium and other battery materials is changing the equation.  In fact, the tipping point when electric cars are as cheap or even cheaper than internal combustion cars is likely to happen this year for many cars and, in fact, has already happened for some.

Battery production is ramping up for Tesla, General Motors, Ford, and others, creating cost savings from mass production. Companies manufacturing batteries in the United States are receiving government subsidies as part of a drive to establish a domestic supply chain and reduce dependence on China.  Before anyone cries foul, it should be noted that globally, oil companies received a trillion dollars in subsidies last year.  The Inflation Reduction Act is making it cheaper for automakers to build electric cars (provided they do it in the United States using US materials) and cheaper for consumers to buy them because of tax credits.

Multiple companies have lowered the price of their electric vehicles in recent months, including both the Tesla Model 3 and Model Y, which are the best-selling electric cars in the United States. GM’s electric Equinox crossover will start at about $30,000, which is still about $3,400 more than the gas-powered version.  But once the electric vehicle tax credit is figured in, it will actually be cheaper.

Electric cars are already cheaper to own and operate because of the much lower cost of powering with electricity instead of gas as well as the greatly reduced maintenance costs for the vehicles.  Once the purchase price of these cars is less than that of gas-powered cars, the economics becomes a no-brainer.

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Electric Vehicles Could Match Gasoline Cars on Price This Year

Photo, posted May 11, 2021, courtesy of Chris Yarzab via Flickr.

Earth Wise is a production of WAMC Northeast Public Radio

Soaring Heat And Inner-City Neighborhoods | Earth Wise

August 31, 2021 By EarthWise Leave a Comment

Inner cities especially vulnerable to climate change

The record-breaking heatwaves this summer have exposed the special vulnerability inner cities have to the effects of summer heat.  Climate change has exacerbated and supercharged heatwaves, as was seen in Seattle and Portland in late June.

Urban cores can be 10 degrees or more warmer than the surrounding countryside.  The urban heat island effect is a result of how cities are built, with so much pavement, so many buildings, and not enough trees.  On top of this, decades of disinvestment in neighborhoods where people of color live have left them especially vulnerable to heat as their homes are not able to cope with it.

In New York City, some residents of Hunts Point in the Bronx keep lists of neighbors they check on to help keep the most vulnerable alive during heat waves.  The city has subsidized 74,000 air conditioners for low-income, elderly residents, and is spending millions to plant trees.  In Phoenix, the hottest big city in the country, officials are working to develop new models for cooler public housing and cooling for streets and pedestrian corridors.

A study, published in 2020, looked at the linkage between higher heat island temperatures and past practices of redlining, where home loans and insurance were unavailable to people in neighborhoods of color.  In 94 of 108 communities studied, the formerly redlined neighborhoods had higher surface temperatures.

Cities are confronted with two heat problems:  emergencies that require immediate action to save lives, and long-term issues related to combating soaring temperatures in heat islands strengthened by global warming. In many cases, cities are not prepared for either problem.  Dealing with and adapting to heat is essential to the long-term viability and quality of life in our cities.

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A Triple Whammy Has Left Many Inner-City Neighborhoods Highly Vulnerable to Soaring Temperatures

Photo, posted May 27, 2014, courtesy of Dan DeLuca via Flickr.

Earth Wise is a production of WAMC Northeast Public Radio.

What’s The Best Way To Reduce Emissions? | Earth Wise

April 1, 2021 By EarthWise Leave a Comment

Taxing carbon is the best solution to climate change

A carbon tax is a fee imposed on the burning of carbon-based fuels, like coal, oil, and gas.  It’s one way to make the users of carbon fuels pay for the climate damage caused by releasing carbon dioxide into the atmosphere. 

According to a new study by researchers at Ohio State University, putting a price on producing carbon is the cheapest and most efficient policy change that legislators can make in order to reduce climate change-causing emissions. 

The case study, which was recently published in the journal Current Sustainable/Renewable Energy Reports, looked at the impact that a variety of policy changes would have on reducing carbon dioxide emissions from electricity generation in Texas. The researchers found that assigning a price to carbon, based on the cost of climate change, was most effective. 

The study did not look at how policy changes might affect the reliability of the Texas power system, an important consideration after the failure of the state’s power grid following winter storms in February. 

But the study did examine other policies and found that they were either more expensive or not as effective, including mandates that a certain amount of energy in a portfolio come from renewable sources.  Subsidizing renewable energy sources was also found to be less effective. 

According to researchers, market-based solutions have previously proven effective combating environmental issues.  For example, a cap-and-trade approach was used to reduce levels of sulfur dioxide, one of the chemicals that causes acid rain. 

For the sake of the climate, we should probably tax carbon. 

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Want to cut emissions that cause climate change? Tax carbon

What’s a carbon tax?

Photo, posted June 5, 2011, courtesy of John Englart via Flickr.

Earth Wise is a production of WAMC Northeast Public Radio.

Falling Behind On Climate Goals

December 24, 2018 By EarthWise Leave a Comment

https://earthwiseradio.org/wp-content/uploads/2018/12/EW-12-24-18-Falling-Behind-on-Climate-Goals.mp3

A series of reports from both the US Government and from the United Nations has underlined the dangers presented by the increasing effects of climate change.  To date, national commitments to reduce emissions have come up short.

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Better Ways To Fish

July 4, 2018 By EarthWise Leave a Comment

https://earthwiseradio.org/wp-content/uploads/2018/07/EW-07-04-18-Better-Ways-to-Fish.mp3

A recent study published in Fisheries Research looked at the effectiveness and level of waste for various categories of fishing gear used in the global fishing industry.

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Making Biofuel Cost Effective

June 14, 2017 By EarthWise

https://earthwiseradio.org/wp-content/uploads/2017/06/EW-06-14-17-Making-Biofuel-Cost-Effective.mp3

Biofuels are considered to be a sustainable alternative to fossil fuels.  However, they are generally more expensive than competing fossil fuels.   Government subsidies, such as we have for ethanol in this country, have been necessary to make biofuels competitive in the marketplace.

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Clean Power Is Cheap Power

January 31, 2017 By EarthWise

https://earthwiseradio.org/wp-content/uploads/2017/01/EW-01-31-17-Clean-Power-is-Cheap-Power.mp3

There are many good reasons why we should be making the transition from fossil fuel energy sources but the one that is likely to be the most persuasive is strictly economic.  It has long been said that the renewable energy future will truly arrive when installing new solar panels is cheaper than a comparable investment in coal, natural gas, or other options.

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Coal Subsidies

October 26, 2015 By EarthWise

coal power

https://earthwiseradio.org/wp-content/uploads/2015/10/EW-10-26-15-Coal-Subsidies.mp3

Coal is the most important energy source for the Chinese economy and in a number of other places around the world.  It is still the largest source of electricity in the US.  It is also one of the main reasons that greenhouse gas emissions continue to increase despite worldwide technological progress and the expansion of renewable energy.  New coal plants are still planned in many places and such plants will emit carbon dioxide for decades.

[Read more…] about Coal Subsidies

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