This article by a Fulbright scholar and climate justice campaigner elaborates the above graph to demonstrate how the so-called ‘free-market’ is hugely distorted by government subsidies that are keeping the fossil fuel producers competitive as the cost of renewable energy undercuts the price of coal and oil in particular. These vast subsidies are keeping the fossil fuel industry afloat at a time when vast but much smaller investments are needed to be directed at eliminating carbon emissions to meet IPCC and Paris Agreement goals to hold global warming to a manageable level.
The article points to the successful propaganda put out by the energy corporations to convince governments that fossil fuel subsidies should be continued, even to the point of convincing Christian fundamentalists in the USA that such a policy is “God’s will”!
This short slide show by Jeremy Leggett, advocate and entrepreneur of non-renewable energy, heralds the end of oil-based transport as the Energy Return on Capital Investment (EROCI) makes investment in renewable energy produce a 6 to 7 times greater energy return than continuing to invest in fossil fuel production:
In this potentially game-changing report, BNP Paribas introduces the concept of Energy Return on Capital Invested. Conclusion: “The economics of oil for gasoline and diesel vehicles versus wind- and solar-powered EVs are now in relentless and irreversible decline, with far-reaching implications for both policymakers and the oil majors.”