What are the costs (complete) of changing U.S. energy practices?
We are familiar with the various direct costs—a barrel of oil for example—but what about the costs not reflected in energy prices? These are referred to as the hidden or indirect costs.
The National Academies' National Research Council was asked by Congress to provide an in-depth report on energy costs that offers a more complete picture. Many of these indirect costs were health or environmental related.
The NRC was able to quantify, as indirect costs in 2005, approximately $120 billion, a not insignificant amount of money.
While incomplete, this is a valuable first step to identifying what our “real” energy costs are. The NRC, for example, was not able to assign a dollar value for ecosystems and infrastructure effects. As well, the report also claims that the financial markets have not taken these various indirect costs into account.
The process can be slow and tedious but absolutely essential to policymakers and ultimately to we the citizens. We quite obviously need to get beyond childlike slogans and relying on the words of the numerous vested interests. This is a valuable report. See The National Academies.
