Oil and Gas companies contribute more than 400 times as much revenue to EU governments as they receive in direct subsidies or other transfers, according to a study released today by NERA Economic Consulting.
“Governments’ treatment of different forms of energy through taxes and subsidies is an issue of global significance, and we hope that NERA’s study helps to shed light on the situation in Europe.”
The study, Energy Taxation and Subsidies in Europe, commissioned by the International Association of Oil & Gas Producers (OGP), analyzes and compares the taxation and subsidy regimes applying to oil, gas, coal, wind, and solar power in the EU28 and Norway during the period 2007-2011.
Using a methodology developed for the analysis, NERA’s experts offer a new perspective on the important question of subsidy and government support to different energy sources.
NERA’s approach quantifies the full range of financial flows both to and from different sources of energy as a result of government policy, including direct subsidies, other transfers of funds, and major taxes.
NERA Associate Director Daniel Radov, who led the study, said, “Governments’ treatment of different forms of energy through taxes and subsidies is an issue of global significance, and we hope that NERA’s study helps to shed light on the situation in Europe.”
