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Hidden Environmental Costs of Gasoline and Fossil Fuels Essay

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Introduction

Fossil fuel is one of the major energy sources used to power human activities. People often buy gasoline at the outlet at a lower cost than the long-term effect of the production and use of the product. Externalization is a phenomenon used to explain the hidden costs accrued as a result of the consumption of a product. For example, while gasoline is purchased at a gas outlet for daily use, other social and environmental costs are hidden behind the price per gallon of gasoline.

An analysis of externalization is paramount to understanding the negative impact of relying on fossil fuels on the environment. The production, transportation, and emissions caused by gasoline have long-term environmental effects that make the world unsustainable. While the price per gallon of gasoline is slightly low, a detailed analysis of the externalization phenomenon reveals more costs due to environmental damage, such as climate change, environmental degradation, and air pollution.

Climate Change

Climate change is a general term used to describe the change in temperature levels due to the ozone layer. As fossil fuel is burnt to produce energy, it releases carbon dioxide and other greenhouse gases, which deplete the ozone layer. As a result, a rise in temperature melts glaciers and leads to rising sea levels. Consequently, floods have become common, and hurricanes often destroy cities near the seas (Skovgaard & van Asselt, 2019).

While a person may see the cost of one gallon that they use, the overall impact of the fuel bought is that there are other costs, such as those used to reconstruct the cities. The cost of the gallon of gasoline leads to additional costs to repair the damages caused by the floods resulting from global warming and climate change. Climate change has long-term effects that cause people to incur more costs and make life more bearable. As people purchase the oil at the pump stations, they must understand the hidden costs that other people or generations are likely to incur due to their actions.

The short-term cost of a gallon of gasoline leads to an increased demand for the fuel. Consequently, the demand increases the need for mining and drilling fossil fuels. As a result of the drilling, there is deforestation and a reduction in the forest cover. Trees play a significant role in the atmosphere by absorbing excess carbon (IV) oxide.

As industrialization increases the burning of gasoline, the only hope for the world is the trees because they absorb the gas and reduce its build-up in the atmosphere (Perera & Nadeau, 2022). However, when the forest cover is removed to enhance the production of fuel, the capacity of the world to absorb the excess greenhouse gas leads to the depletion of the ozone, and climate change is increased. Purchasing a gallon of gasoline has the long-term effect of destroying the environment through climate change.

Air Pollution

Burning gasoline produces pollutants such as nitrogen oxide and other volatile compounds in the environment. Air pollution leads to public health issues, and people will likely suffer respiratory diseases. The external costs associated with the gallon of gasoline lead to the numerous expenses spent in the hospitals as people get raised to treat their sicknesses, which result from the pollution caused by gasoline (Wood & Roelich, 2019).

The respiratory health issues result in costs not catered for at the pump when buying gasoline. As more people become sick because of pollution, the root cause of environmental degradation is the underlying issue of gasoline. It is, therefore, essential to postulate that for every gallon of gasoline spent, the resultant pollution leads to sicknesses, which require additional costs to treat.

The process of refining gasoline had numerous environmental issues, such as the destruction of habitat. As forests are cleared to pave the way for fuel processing, the natural ecosystem is destroyed, and sustainability is jeopardized. Water pollution and soil contamination threaten life in the waters and crops (Skovgaard & van Asselt, 2019).

The pump cost does not include all the agricultural losses that result from soil contamination. When the farmers record losses due to the destruction of the soil, the gasoline price at the pump does not cater to the losses experienced by the farmers. The costs of the losses in farm produce and wildlife are bone by the communities but are not incorporated as part of the price per gallon of gasoline.

Economic Impacts of Damages

Climate change is associated with extreme weather conditions like floods and hurricanes, jeopardizing different economic sectors. For example, some nations that depend on tourism for economic development suffer huge losses when tourists stop visiting because of the fear of hurricanes. The costs of losing tourists in the respective nations are not incorporated into the price per gallon of gasoline at the gas station. When a hurricane damages infrastructure, they are supposed to be repaired so the nations can resume normal operations (Perera & Nadeau, 2022). The production and use of gasoline cause additional costs.

Hurricanes and floods are the products of the climate, which significantly impact the displacement of people, especially when houses are damaged. Although the connection between gasoline and the hurricane may not be vivid, the continuous use of gasoline leads to global warming and the subsequent rising sea level. As a result, hurricanes occur, and people’s houses are destroyed (Wood & Roelich, 2019). The displacement results in a cost incurred by their governments to resettle the people in their respective areas. These additional costs are not displayed at the pump. It is, therefore, paramount to note that the externalized price is far higher than the traditional price people pay.

Formation of Acid Rain

The burning of fossil fuels leads to the formation of acid rain as the carbon compounds formed in the atmosphere come into contact with the water droplets. Acid rain significantly impacts groundwater, soil quality, and the lives of the plants and animals that depend on the water. As a result of the loss, additional costs are needed to overcome the challenges caused by the acid rain in the community. The water and soil quality change caused by acid rain affects biodiversity, leading to more ecosystem losses (Skovgaard & van Asselt, 2019).

The additional costs incurred due to the acid rain are not part of the costs incurred at the pump. As people use gasoline, they must be aware of its numerous environmental effects and be ready to take responsibility for their actions. The devastating impact of acid rain leads to numerous costs externalized from the price of gasoline at the pump station.

Generation of Harmful Waste

Other than the emission of greenhouse gases by the use of gasoline, other harmful effects are generated by the usage of the fuel. For example, used gasoline oil, containers, and other waste products threaten the environment. The environmental wastes and the disruption of the ecosystem are likely to have a significant effect in the long run.

If the byproducts of the oil refinery are not well managed and disposed of, it becomes a threat to the environment. It leads to massive sicknesses, which are externalized as an additional cost. Research by Perera & Nadeau (2022) showed that one gallon of used gasoline is enough to contaminate over one million gallons of drinking water, disrupting the ecosystem. All other petroleum-related wastes significantly affect the environment, leading to additional costs affecting general well-being.

Conclusion

An analysis of how the long-term cost of environmental damage is externalized away from the short-term price proves that using fossil fuel is dangerous to the planet’s sustainability and should be regulated. The constant use of gasoline increases its demand, facilitating increased extraction. One of the most essential externalized costs is climate change caused by the continuous use of oil. As a result, the outcome of the environment leads to losses.

Since the production and usage of gasoline lead to climate change, all its negative impacts lead to costs that are not included in the original price of the gallon of gasoline. As people continue to use gasoline, they must be aware of the hidden fees the world has to incur. The analysis shows that fossil fuels are costly to use because of the indirect costs resulting from the impacts they cause.

References

Perera, F., & Nadeau, K. (2022). . New England Journal of Medicine, 386(24), 2303-2314. Web.

Skovgaard, J., & van Asselt, H. (2019). . Wiley Interdisciplinary Reviews: Climate Change, 10(4), 59-81. Web.

Wood, N., & Roelich, K. (2019). . Energy Research & Social Science, 52, 114-122. Web.

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IvyPanda. (2025, January 22). Hidden Environmental Costs of Gasoline and Fossil Fuels. https://ivypanda.com/essays/hidden-environmental-costs-of-gasoline-and-fossil-fuels/

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"Hidden Environmental Costs of Gasoline and Fossil Fuels." IvyPanda, 22 Jan. 2025, ivypanda.com/essays/hidden-environmental-costs-of-gasoline-and-fossil-fuels/.

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IvyPanda. (2025) 'Hidden Environmental Costs of Gasoline and Fossil Fuels'. 22 January. (Accessed: 18 February 2025).

References

IvyPanda. 2025. "Hidden Environmental Costs of Gasoline and Fossil Fuels." January 22, 2025. https://ivypanda.com/essays/hidden-environmental-costs-of-gasoline-and-fossil-fuels/.

1. IvyPanda. "Hidden Environmental Costs of Gasoline and Fossil Fuels." January 22, 2025. https://ivypanda.com/essays/hidden-environmental-costs-of-gasoline-and-fossil-fuels/.


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IvyPanda. "Hidden Environmental Costs of Gasoline and Fossil Fuels." January 22, 2025. https://ivypanda.com/essays/hidden-environmental-costs-of-gasoline-and-fossil-fuels/.

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