Climate, Environmental, and Health Impacts of Fossil Fuels

This fact sheet from the Environmental and Energy Study Institute (EESI) outlines the 'externalities'—climate, environmental, and health costs not reflected in market prices—associated with the fossil fuel supply chain. It details the impacts of burning coal, oil, and natural gas, including greenhouse gas emissions, pollution, and public health crises, while proposing policy mechanisms to mitigate these costs.

• Fossil fuels contribute significantly to climate change and associated economic damages in the United States. In 2019, they were responsible for 74 percent of U.S. greenhouse gas emissions, with nearly 25 percent of those emissions originating from fossil fuels extracted from public lands. Between 2016 and 2020, extreme weather events linked to climate change cost the U.S. an estimated $606.9 billion. Additionally, defending U.S. coastal communities from sea level rise is estimated to cost $400 billion over the next 20 years.
• Fossil fuel production and use cause extensive environmental degradation through air, water, and plastic pollution. Over 99 percent of plastics are derived from fossil fuels; globally, 300 million tons of plastic waste are produced annually, with 14 million tons entering the ocean. In the U.S., the plastic industry produces 232 million tons of carbon dioxide equivalent per year. Water pollution is driven by oil spills and fracking, with each fracking well using 1.5 million to 16 million gallons of water. A notable example of environmental damage is the 2010 BP Deepwater Horizon spill, which released 134 million gallons of oil into the Gulf of Mexico and cost BP $65 billion in cleanup and penalties.
• Fossil fuel pollution has severe global and domestic health impacts, disproportionately affecting marginalized communities. Globally, one in five deaths is attributed to fossil fuel pollution. In the U.S., 350,000 premature deaths in 2018 were linked to this pollution, with the highest per capita death 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. In Louisiana's "Cancer Alley," a predominantly Black and low-income area, cancer risk is nearly 50 times the national average due to 150 nearby oil refineries and chemical plants.
• Several policy mechanisms are proposed to reduce these externalities, including the elimination of fossil fuel subsidies, which could save taxpayers $35 billion over ten years. Other suggestions include increasing the social cost of carbon (SCC), implementing a federal clean electricity standard, and establishing carbon pricing, such as carbon taxes or cap-and-trade programs like the Northeast's Regional Greenhouse Gas Initiative.

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} }