Fossil fuels appear cheap by comparison because they don't have to pay for the ongoing damage they are doing to the environment or our health. These costs are borne by society and the planet at large.
A draft of a 2007 combined World Bank and SEPA report stated that up to 760,000 people died prematurely each year in China because of air and water pollution. High levels of air pollution in China's cities caused to 350,000-400,000 premature deaths. Another 300,000 died because of indoor air of poor quality. There were 60,000 premature deaths each year because of water of poor quality. Chinese officials asked that some of results should not be published in order to avoid social unrest.
Pollution in ChinaA new report from the International Monetary Fund says global use of fossil fuels costs taxpayers and consumers $5.3 trillion year. That’s trillion — with a T. The IMF report looked at the overall benefits and harms of fossil fuel use, factors that economists typically put into a separate category called "externalities," and classified these, too, as subsidies. These include such things as increased economic activity, damage to public health and the environment, and the amount of money unavailable for investment in other community goods due to hidden costs. "From an economic perspective the true cost is the true cost. The reason we don't face the true cost is there's no market for these damages.”
The main focus of the report, Coady says, is to compare the cost that people pay for fossil fuel-based energy to the cost that they would pay if they calculated the true cost of the damage done by their consumption — for example, the local damages related to having particles in the air, breathing problems, health-related problems that are believed to increase the mortality rate, or just lower quality of life. “When all of these get factored into account, they're very substantial.”
IMF: 'True cost' of fossil fuels is $5.3 trillion a yearAlso, German households consume less electricity than their US counterparts. So total electricity bills are actually lower for German households than US households, despite higher unit costs for electricity.
While Americans pay on average around 12 cents per kilowatt-hour of electricity, Germans easily pay twice as much. Germans consume only a third as much electricity as Americans do. Germans only pay around 92 dollars a month for electricity – compared to the US average of 110 dollars.
German power bills are low compared to US average
The oil barrel is half-full.