I would guess that if we stopped subsidizing oil, it would be much less economical than it is now and energy companies would be trying harder to develop renewables because the economic returns would be greater in the long run than for oil. In this way, there would be more private funding of renewable energy. The money that used to subsidize the oil may not necessarily directly go into funding renewable energy, but it could.
Given “subsidizing” of perhaps $20 billion per year (per Greenpeace, see link; I’m assuming they will be on the high end of estimating subsidies), if that were removed it would make a really small difference in the price of oil products and/or their being “economical”. At 19.6 million barrels a day, and $80 a barrel, US consumers spend about $575 billion a year on petroleum products. A change in the price of oil by $5 a barrel significantly exceeds the $20 billion subsidy. $20 billion is a lot of money – but not especially significant in the world of US oil consumption.
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