Unearthing the True Cost of Fossil Fuels

[Tunkamerica]

http://www.treehugger.com/energy-policy/true-cost-fossil-fuels.html

...

According to Ratigan’s calculations, the price of gasoline is around $10 too cheap per gallon when all unaccounted-for costs are included. Other projections put the figure even larger. And there are a wide range of estimates of the “true” cost of coal: Depending on how you factor in the costs of climate change, it could be between a few additional cents per kWh to a whopping ¢26.89 extra per kilowatt hour—the high-end estimate from the Harvard study. By way of comparison, the average American paid ¢11.54 per kWh on their residential electric bills last year. In other words, if prices accurately reflected all of the actual costs of burning coal, coal-fired power plants would be dead in the water.

Using the example of oil, Ratigan writes that such distortion results in a situation where “the free market can’t help [us] decide if it’s worth switching from gas to another fuel, because the market isn’t free, it’s rigged.” Similarly, investors, homeowners, and utilities can’t decide whether it will pay off to invest in clean energy and efficiency when the price of burning coal, which still supplies nearly half the nation with electricity, is so cheap.

Which is why we’ve got to restore price integrity to commodities like oil and coal—we’ve got to prevent fossil fuel companies from dumping their costs on us, level the playing field for clean energy technologies, and give Americans the choice they deserve over what powers their lives. Which means we've got to increase the price of gasoline and coal-fired electricity.

Lots more at the link.

[DCKit]

1. This is important. nt

[cbrer]

2. I couldn't agree with you more

But this will never happen in a million years under our current political system. Republican or Democrat.

Perhaps when there's climate change "proof"...

[Tunkamerica]

3. just to be clear it's the author's stance. I posted the article for discussion.

[cbrer]

4. Thanks for the Link

It's a great article. Ratigan maintains a very good Facebook series as well. I don't understand what the advantage is to creating a fee for payment to citizens. Like a rebate? Cutting subsidies is a fantastic idea. Good luck...

If we could take any steps at all in creating a true free market, many things would be different.

[Overseas]

5. K&R. Excellent article. Billions in subsidies for fossil fuels while saying

"solar is too expensive" for all these years.