ClaimsVinod Khosla

“Cleantech subsidies are a miniscule fraction of one-percent of these amounts.”

Vinod Khosla, venture capitalist, in open letter to CBS 14 January 2014 Vinod Khosla hits back at 60 Minutes for cleantech errors (Fortune) archived copy

Factual Economics and markets

Cleantech subsidies are a minuscule fraction of one percent of the fossil-fuel subsidy amounts referred to.

Mostly false False in substance, right in a detail.

Factual: Statements about the present or the past, checked against the record: did they hold up?

What would count as true or false

Judged as of 2014-01-14. The claim compares U.S. cleantech subsidies with a figure of $502 billion in fossil-fuel subsidies (a widely cited global estimate, e.g. from the IEA or IMF). True: credible figures show annual cleantech or renewable subsidies were far below 1% of $502 billion, i.e. well under about $5 billion. Mostly true: cleantech subsidies were under 1% of the total, but not a 'minuscule fraction' of 1%. Mixed: the result depends heavily on the definitions or bases used for the comparison. Mostly false: cleantech subsidies were above 1% of the stated amount, e.g. US renewable subsidies of about $10-15 billion a year (EIA). The claim then rests on a real gap but overstates it, or compares mismatched bases (US versus global). False: cleantech subsidies were comparable to or larger than the stated fossil-fuel subsidy amount.

Set before the research began.

Evidence (4)

  1. E1 Total energy subsidies decline since 2010, with changes in support across fuel types - U.S. Energy Information Administration (EIA) U.S. Energy Information Administration (EIA) · 13 March 2015

    “Wind subsidies increased by less than 10%, going from $5.5 billion in 2010 to $5.9 billion in 2013.”
  2. E2 Total energy subsidies decline since 2010, with changes in support across fuel types - U.S. Energy Information Administration (EIA) U.S. Energy Information Administration (EIA) · 13 March 2015

    “However, solar subsidies increased the most, both in absolute and percentage terms, going from $1.1 billion to $5.3 billion in 2013, with declining solar costs and state-level policies also supporting additional growth.”
  3. E3 Total energy subsidies decline since 2010, with changes in support across fuel types - U.S. Energy Information Administration (EIA) U.S. Energy Information Administration (EIA) · 13 March 2015

    “Between FY 2010 and FY 2013, the total value of direct federal financial interventions and subsidies in energy markets decreased 23% from $38.0 billion to $29.3 billion dollars, reflecting changes in both the type of subsidies offered and fuels that received support.”
  4. E4 Total energy subsidies decline since 2010, with changes in support across fuel types - U.S. Energy Information Administration (EIA) U.S. Energy Information Administration (EIA) · 13 March 2015

    “Federal subsidy support for fossil fuels declined from almost $4 billion in FY 2010 to $3.4 billion in FY 2013.”

Reasoning

EIA puts U.S. federal wind subsidies at $5.9 billion in FY2013 (E1) and solar subsidies at $5.3 billion (E2). Together that is about $11.2 billion, roughly 2.2% of $502 billion. That is above 1%, not a tiny fraction of 1%. EIA puts U.S. federal fossil-fuel subsidies at $3.4 billion in FY2013 (E4), a U.S. figure rather than the global $502 billion estimate the criteria use for the comparison. The criteria call that comparing mismatched bases, and they put renewable subsidies of about $10–15 billion a year in the mostly-false range.

Cite this claim

Vinod Khosla, “Cleantech subsidies are a minuscule fraction of one percent of the fossil-fuel subsidy amounts referred to.” (said 14 January 2014). Verdict: mostly false. Reliability API, claim c_f62dd61ca2b0, method 0.1.0+c876030c, dataset release v1.1.2. https://epistacklabs.com/claims/c_f62dd61ca2b0

This claim is in dataset release v1.1.2, with the same verdict.

Reply to this claim

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All of them

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