The hidden costs of fossil fuels - and biofuels, too

There are many hidden costs that aren’t factored into the market prices of coal, oil, and gasoline, or the prices of electricity generated by fossil fuels, the report says. But someone eventually pays for them.

The report found that, in 2005, the hidden costs of energy production with fossil fuels in the United Statesamounted to $120 billion. This includes the negative impact of air pollution on health, but doesn’t include the effects of mercury emitted by coal-fired plants on wildlife and people, harm done to ecosystems by air pollution, or the climate-warming effects of carbon emissions.

Coal-fired plants produce about half the nation’s electricity. The report found that pollutants like sulfur dioxide, nitrogen oxides, and particulate matter cost the US $62 billion. That works out to about 3.2 cents’ worth of “nonclimate” damages for every kilowatt-hour (kWh) generated.