2010

A report from the National Research Council titled Hidden Costs of Energy: Un priced Consequences of Energy Production and Use, examines and estimates hidden costs of energy production and use such as the damage air pollution imposes on human health that are not reflected in market prices of coal, oil, other energy sources, or the electricity and gasoline produced from them. The report assesses what economists call external effects caused by various energy sources over their entire life cycle. Because these effects are not reflected in energy prices, government, businesses, and consumers may not realize the full impact of their choices. When such market failures occur, a case can be made for government interventions such as regulations, taxes, or tradable permits to address these external costs. The committee also separately derived a range of values for damages from climate change.

Journal: Mrs Bulletin / Materials Research Society