Texas Tech University

Study: Renewables, Nuclear Power Gets Outsized Federal Subsidies


January 13, 2019

The Institute for Energy Research on Friday announced a report showing that renewables and nuclear power received 93% of federal subsidies in 2016, but produced only about 22% of the nation's energy, which drew mixed reactions from industry observers.

In contrast, Michael Giberson, an economist in the Rawls College of Business at Texas Tech University, cautioned against concluding that the level of subsidies should correlate positively with the amount of output from subsidized activities. "[One] of the points of the subsidy is to encourage the development of new technologies and resources," Giberson said in an email Friday. "It is not at all surprising that most of the subsidies go to small segments of energy produced."


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