Energy Subsidies - Externalities

Externalities

The subsidies the nuclear and fossil-fuel industry receive — and have received for many years — make their product “affordable.” Those subsidies take many forms, but the most significant are their “externalities.” Externalities are real costs, but they are foisted off on the community instead of being paid by the companies that caused them.

Paul Epstein, director of Harvard Medical School Center for Health and the Global Environment, has examined the health and environmental impacts of coal, including: mining, transportation, combustion in power plants and the impact of coal’s waste stream. He found that the "life cycle effects of coal and its waste cost the American public $333 billion to over $500 billion dollars annually". These are costs the coal industry is not paying and which fall to the community in general. Eliminating that subsidy would dramatically increase the price of coal-fired electricity.