The true cost of gasoline

[youtube http://www.youtube.com/watch?v=6RhYY_4Wzls&w=560&h=349]

Of course the same applies for coal. More-so actually because coal pollutes far more than gasoline.

The fact is that thanks to negative externalities the price of fossil fuels is artificially low. And that is the main reason why we use so many, and why clean energy has a hard time catching on.

But as the video above explains, despite the fact that the price at the pump for gas is artificially low, we all end up paying the true cost eventually. Which is precisely why some economists call thisthe greatest market failure the world has seen

And that is why I am such a strong proponent of a carbon tax. It is the simplest, most transparent way to internalize the costs of burning fossil fuels and force us to pay the true cost up front.

It allows the free market to function properly and avoid our current market failure.

This article was posted in Blog.

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