New NERA Economic Consulting Study shows Oil and Gas Industry contributes billions of Euros in net payments to European governments

18 June 2014

London -- 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, a leading global provider of independent economic advice and analysis in business, legal, and regulatory matters.

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, commented "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."

Key Findings from Energy Taxation and Subsidies in Europe:

  • The EU28+Norway governments receive far greater revenues from oil, gas, and coal than these energy sources receive in the form of direct subsidies or other transfers.
  • Oil and gas contributed €433 billion in revenues to the EU28+Norway governments in 2011, and received less than €1 billion in transfers as a result of government policies.
  • Government revenues from coal accounted for roughly €36 billion in revenues in 2011, but the energy source received transfers of €4 billion as result of government policies.
  • NERA estimates that wind contributed €8 billion to government revenues in 2011. But, as a result of government policies, wind received transfers amounting to an estimated €9 billion-a total net payment to the sector of €1 billion.
  • In 2011, solar power contributed €2 billion to government revenues, but received transfers close to €17 billion as a result of government policies.
  • Duties on motor vehicle fuels account for the largest single source of government revenues from energy. Duties on these fuels yielded over €180 billion in 2011, accounting for 84 percent of all excise duty revenues from energy.

NERA's study provides a clear, transparent, and consistent way of understanding government subsidy to, and revenue from, selected energy sources. The approach used has the advantage of producing results that can be readily compared across countries and energy sources.

Energy Taxation and Subsidies in Europe can be downloaded from:

About NERA

NERA Economic Consulting ( is a global firm of experts dedicated to applying economic, finance, and quantitative principles to complex business and legal challenges. For more than six decades, we have been creating strategies, studies, reports, expert testimony, and policy recommendations for government authorities and the world’s leading law firms and corporations. We bring academic rigor, objectivity, and real-world industry experience to issues arising from competition, regulation, public policy, strategy, finance, and litigation.

NERA’s clients value our ability to apply and communicate state-of-the-art approaches clearly and convincingly, our commitment to deliver unbiased findings, and our reputation for quality and independence. Our clients rely on the integrity and skills of our unparalleled team of economists and other experts backed by the resources and reliability of one of the world’s largest economic consultancies. Continuing our legacy as the first international economic consultancy, NERA serves clients from major cities across North America, Europe, and Asia Pacific.