Economic externalities energy pollution

There are major problems with this individualistic approach to energy policy, however. The ideal market of economic theoiy exists nowhere in reality. Further, even market defenders acknowledge cases in v hich markets fail. Significantly, some paradigmatic examples of market failure, such as the externality of pollution and monopolistic control of production, are associated with the production of energy. More importantly, perhaps, crucial ethical questions can be missed if we only consider the perspective of individual values and choice. 

The economical comparison between competing energy system should be based on the effective costs of the services these fuels provide. The effective costs include the utilization energy, the east of fuel, and the costs associated with fuel consumption but which are not included in its price (so-called external costs). External costs include the costs of the physical damage done to humans, fauna, flora, and the environment due to harmful emissions, oil spills and leaks, and coal strip mining, as well as governmental expenditures for pollution abatement and expenditures for military protection of oil supplies. 

---