06/29/2016
This article addresses the "implicit subsidy" given to fossil fuels as a result of them not having to pay for the full costs of the pollution caused by their products. The results are pretty startling. For example:
"For all companies and all years, the economic cost to society of their CO2 emissions was greater than their after‐tax profit, with the single exception of Exxon Mobil in 2008". In other words, if these fossil fuel companies had to pay the full cost of the carbon emissions produced by their products, none of them would be profitable.
It's even worse for pure coal companies, for which "the economic cost to society exceeds total revenue in all years, with this cost varying between nearly $2 and nearly $9 per $1 of revenue." Total revenue, Hope and colleagues note, represents "employment, taxes, supply purchases, and indirect employment" — everything that coal companies contribute to the economy. It turns out the costs they impose through carbon emissions are larger than all those contributions combined. (For oil and gas companies, carbon costs generally range from 10 to 50 percent of total revenue.)"
These are the same fossil fuel companies that constantly hammer renewables for receiving subsidies, yet make their profits by pushing their own costs of doing business onto the rest of us...and they spend very heavily to buy votes in Congress and at all levels of government as they have done for a century. It's long past time to call them out on it!
Climate change impacts exceed fossil fuel profits.