A study published in the Proceedings of the National Academy of Science concluded that US crude, gas, and coal producers get tens of billions of dollars worth implicit benefits annually for not paying for environmental and health damages caused by their products. The study was conducted by economists and analysts attempting to estimate the cost of using fossil fuels to society. The research was launched as policymakers were considering fresh subsidies for fossil fuel producers to help them recover from the COVID-19 pandemic.
Yale University economist Matthew Kotchen, the research initiator, said US fossil fuel companies get implicit subsidies worth $62 billion a year due to what he called “inefficient pricing”. The total climate, health, and transportation costs to society stood at about $568 billion. The study showed in 2018, Peabody Energy Corp got about $1.56 billion in implicit subsidies, Arch Resources got about $1 billion, EQT Corp got about $696 million, and Exxon got about $688 million.
President Joe Biden’s plans to end fossil fuel subsidies are facing challenges due to the Democrat's slim majority in the senate and some of them come from fossil fuel-producing states. However, the research could help policymakers to address the issues of “wasteful subsidies,” said ufts University economist Gilbert Metcalf.
