A new study has estimated exactly how much fossil fuel subsidies are. And let's just say, fossil fuels are really expensive.

SeekerPublished: July 10, 2018Updated: July 11, 2018
Published: July 10, 2018Updated: July 11, 2018

Taxpayers around the world are giving fossil fuel producers $5 trillion in free money. Every year. That's as much as the Iraq and Afghanistan wars put together.

This is based on a new study by the International Monetary Fund, that estimated the amount of the subsidies to fossil fuel companies. And five trillion is a lot of money.  The reason they think it's so much, is because fossil fuel producers don't pay to clean up the air or water. They don't have to deal with the medical costs of air pollutants. And the researchers bunch all this into subsidies. Effectively making taxpayers foot the bill to clean up and pay, just to keep using fossil fuels.

For example, if a company wants to drill a well that may not hit oil, the cost is 100-percent tax deductible; it's a direct taxpayer subsidy. But the paper also included the more intangible costs like climate change effects, the cost to supply oil vs what consumers pay, and even deaths from air pollution! Again, this added up to Five trillion dollars! And there is a pile of research saying carbon and particulate-emitting fossil fuels cost more than you think.

 

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