The True Cost of Fossil Fuels

Posted: October 18, 2010 in economy, environment
Tags: , , , ,

The Christian Science Monitor (CSM) is possibly my favorite newspaper, they have a really in-depth news section that actually has news stories and a great spread of both domestic and international news.  Also they don’t seem to be particularly wed to either a conservative or liberal bias and often when there is something going on in the world I will turn to the CSM to get their take on it, along with the New York Times the CSM is the only other paper I read regularly or trust as a news source.  Even more so for anything having to do with the environment and the link below is a fantastic example.  The article focuses on what Economists refer to as internalizing externalities, fancy terms for actually accounting for the true cost of something.  In other words, it may cost a manufacturer $10 to make a product, however that cost does not consider the environmental impact of the production process, so if that pollution takes $2 to clean up then the true cost of the product should be $12 not $10, but in our society that $2 cleanup cost gets dumped on all of us.  Check it out, it’s a good read:


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