Re: General Discussions
Reply #710 –
It's very difficult to debate those claims because the reall world figures are so hard to find, but those big dollar figures that talk about subsidies in the billion$ are pretty bogus.
I believe the inflated figures use the IMF/WTO definitions of a subsidy, which includes things like the emissions and energy consumed in traffic and traffic jams as a fossil fuel subsidy. Petrol and LPG are counted on top of oil and natural gas, but petrol and LPG are derived from natural gas and oil so that is artificially exacerbating the figure.
I went looking for real figures and it turns out it's quite hard to find. Even for literate economists like professors from ANU, Melbourne and Sydney Universities. The Unis were engage as a CRC to try and establish the true dollar$ in the energy debate, and after more than a year of research they all reported that most likely the real world subsidies totalled below $1B, in fact they reported the most likely value was less than $500M. They didn't agree on the figure, some claimed as low as $300M and others as high as $1B, but it was clear $10B was a fantasy.
I crossed checked this with someone I know who just so happens to be one of our Deputy Commissioners for Taxation, they really do have all the numbers. While they couldn't tell me the specific figures, they told me a good measure of the level of bullcrap was that "all industry and research subsidies" for the same period totalled just over $12B dollars, so the claims of $10B for just one segment of industry it seems is utter bullcrap!
Fwiw, it seems the UNs rock throwing at Australia uses the IMF/WTO definitions, and claims our derided "Clean Coal" R&D budget in total is more than what the Australian Tax Department claims is our countries entire Industry / Science subsidy spend!
My takeaway on all this is simply the bullcrap politics infiltrates on both sides of the debate, both sides lie through their teeth! It's interesting because it's the old debate about extremes of left or right being circular, if you go far enough to become an extremist in either direction you meet back in the middle.