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Masked Energy

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Submitted By atrenev1
Words 547
Pages 3
Anton Trenev
Current Event #1
27 September 2010
Masked Energy
During the past century, the broad advancement in technology has led to previously unimaginable possibilities for people around the world. However, with modern lifestyles and the increasing population, humans are now beginning to reap the consequences of this advancement. Modern production and consumption is often encompassed by hidden economic costs to society known as externalities. Externalities go beyond market prices and range from the cost of local pollution to worldwide costs associated with global warming. In the article “Hidden costs of fossil fuels add economic burdens,” Michael Leonard, analyzes the external costs, particularly climate change, that arise from the burning of fossil fuels. The market failure that results because of externalities related to the use of fossil fuels presents the biggest threat to the planet and the livelihood of mankind. The focal point in the article “Hidden costs of fossil fuels add economic burdens,” is the importance of realizing the true negative impact fossil fuels have on society. Josh Mogerman, a spokesman from the Natural Resources Defense Council, addresses that “people pay to maintain supply lines, clean up after polluters, secure foreign sources of oil, and treat illnesses associated with pollution” (1). Furthermore, global climate change is predicted to cause worse problems to the economy such as coastal flooding and inland drought (1). Michael Leonard points out that fossil fuels have long been perceived as the cheapest source of energy, while external costs were not accounted for. In effect, these externalities hide the true cost of fossil fuel consumption. In order to analyze the failure of the fossil fuel market, it is necessary to understand that firms act in their own best interest, that is, to make a profit. Private firms have no

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