Climate, Environmental, and Health Impacts of Fossil Fuels

The document details the 'externalities' of fossil fuels—costs not reflected in market prices—across climate, environmental, and health dimensions. It highlights significant U.S. impacts, including $606.9 billion in extreme weather costs (2016-2020) and 350,000 premature deaths in 2018. It also emphasizes the disproportionate burden on communities of color and low-income areas, such as 'Cancer Alley' in Louisiana. Proposed policy solutions include eliminating subsidies, increasing the social cost of carbon, implementing a federal clean electricity standard, and establishing carbon pricing.

• Fossil fuels generate significant climate externalities in the United States, where they accounted for 74 percent of greenhouse gas emissions in 2019. Specific impacts include a 30 percent increase in ocean acidity over 150 years, sea level rises of about 9 inches since the late 1800s, and estimated extreme weather costs of $606.9 billion between 2016 and 2020.
• Environmental externalities include water pollution from fracking, where each well uses 1.5 million to 16 million gallons of water, and plastic pollution, with over 99 percent of plastics derived from fossil fuels. The U.S. plastic industry produces 232 million tons of carbon dioxide equivalent annually, with emissions projected to exceed those of coal-fired power plants by 2030.
• Fossil fuel pollution is linked to one in five deaths globally. In the U.S., 350,000 premature deaths in 2018 were attributed to this pollution, with the highest per capita rates in West Virginia, Ohio, and Pennsylvania. The annual health cost of fossil fuel-generated electricity in the U.S. is estimated up to $886.5 billion.
• The impacts of fossil fuels disproportionately affect low-income communities and communities of color. Black and Hispanic Americans are exposed to 63 and 56 percent more particulate matter pollution, respectively, than they produce. In Louisiana's 'Cancer Alley,' cancer risk is nearly 50 times the national average due to the proximity of 150 oil refineries and chemical plants.
• Proposed policy mechanisms to mitigate these externalities include a federal clean electricity standard, carbon pricing (such as carbon taxes or cap-and-trade programs like the Regional Greenhouse Gas Initiative), increasing the social cost of carbon, and eliminating fossil fuel subsidies, which could save taxpayers $35 billion over ten years.

APA

Bertrand, S. (2021). Climate, Environmental, and Health Impacts of Fossil Fuels. Environmental and Energy Study Institute. https://www.eesi.org/files/FactSheet_Fossil_Fuel_Externalities_2021.pdf

Chicago

Bertrand, Savannah. Climate, Environmental, and Health Impacts of Fossil Fuels. Environmental and Energy Study Institute, 2021. https://www.eesi.org/files/FactSheet_Fossil_Fuel_Externalities_2021.pdf.

Wikipedia

{{cite report |last1=Bertrand |first1=Savannah |title=Climate, Environmental, and Health Impacts of Fossil Fuels |publisher=Environmental and Energy Study Institute |date=2021 |url=https://www.eesi.org/files/FactSheet_Fossil_Fuel_Externalities_2021.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{bertrand2021climate, author = {Bertrand, Savannah}, title = {{Climate, Environmental, and Health Impacts of Fossil Fuels}}, institution = {Environmental and Energy Study Institute}, year = {2021}, url = {https://www.eesi.org/files/FactSheet_Fossil_Fuel_Externalities_2021.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }