The true cost of fossil fuels is significantly higher than is commonly perceived. The oil and gas industry, often controlled by autocratic and plutocratic entities, employs deceptive tactics to maintain consumer dependency on their products. This deception involves providing misleading information regarding the actual out-of-pocket and long-term expenses associated with continued reliance on fossil fuels.
Currently, renewable energy sources represent the primary competition. In our region, solar, wind, and hydro power are the predominant sources. As Bill McKibben, a prominent environmental advocate, aptly stated, “Light from the sun has to travel 93 million miles to reach the Earth, but none of it passes through the Strait of Hormuz.”
Renewable energy has emerged as the most cost-effective method of electricity generation. Notably, it is not susceptible to fluctuations in geopolitical conflicts, which are often beyond our control. The abundance of renewable energy in some geographical regions has led to initiatives like free electricity for three hours daily in Australia, and occasional negative electricity pricing during peak solar production in the southwest US, a situation that already occurs in the summer months for some solar array owners in Vermont. This affordable electricity enables electric vehicles (EVs) to be more economical than gasoline or diesel engines. According to the Energy Action Network of Vermont, gas cars incur a $9,900 higher operational cost over the vehicle’s lifespan compared to electric cars (https://eanvt.org/2025-annual-report/). Daytime EV charging can also store solar energy production peaks, which helps to reduce the cost of grid upgrades on our electricity bills.
Recognizing these advantages, Vermonters have increasingly adopted electric vehicles. However, there are some who advocate for increased fees on EVs, arguing that they do not contribute to the transportation budget through gasoline taxes. The reality is that EVs already pay purchase and use tax, and an increasing amount of road funding has come from general tax revenues, not the gas tax. Gas tax revenue has decreased primarily due to the improved fuel efficiency of vehicles and also the failure of state and federal fuel taxes to keep pace with inflation since 1993.
Recently, the legislature has been considering “Mileage-Based User Fees” (MBUF) for EVs, even though EVs currently pay an annual $89 infrastructure fee. Many arguments for increasing EV fees overlook the detrimental impact on the affordability of these efficient vehicles in the short and long term. There are some legislators, and the governor’s office, who are willing to raise taxes on more efficient electric vehicles instead of fossil fuels. This goes against the best tax policy of the having the User pay. If the true costs of gasoline cars and trucks were considered, substantial tax incentives, not taxes, would be provided for Vermont initiatives aimed at transitioning to electric options.
The true cost of fossil fuels extends beyond the 30% increase in their price since the commencement of the Iran War. These costs also encompass numerous health and environmental concerns. Although the fossil fuel industry has finally stopped the harms caused by leaded fuels, (which are associated with a rise in homicide rates), toxic fumes, particulates, noise, carbon emissions, and other environmental pollutants have a profound impact on our well-being and economic prosperity. A recent publication by the Massachusetts Institute of Technology (MIT) highlighted that air pollution is responsible for approximately 200,000 premature deaths annually in the United States (https://lae.mit.edu/2024/06/28/air-pollution-causes-200000-early-deaths-each-year-in-the-u-s/). In 2024, a research article authored by leading scientists estimated that diesel trucks alone cause damages to health and the climate amounting to between $63.3 billion and $81.1 billion, or about $195 to $249 per person. (https://iopscience.iop.org/article/10.1088/1748-9326/ad75a9, p. 5) The Clean Air Task Force (CATF) estimated that the health impacts of diesel in Vermont in 2023, including deaths, heart attacks, bronchitis, asthma, and cancer, totaled approximately $126 million (https://www.catf.us/deathsbydiesel/). Over 60,000 Vermonters, almost 1 in 10 people, are affected by asthma. Is this the kind of damage we wish to inflict upon Vermont when cleaner and less costly vehicles are available?
Vermont has experienced an increase in flooding, and the warming climate is partially responsible. The western United States is grappling with droughts and wildfires. The oceans have absorbed 90% of climate change heat and are warming and rising. What are the costs we impose upon our grandchildren when the oceans rise sufficiently to damage our coastal ports, such as Boston and New York? East coast states have already started to fortify coastlines, infrastructure, and roadways against storm damage and erosion. The damages from storms such as Sandy and Irene have been catastrophic, and future storms could be potentially worse making it challenging to determine an exact timeline and extent of destruction. However, the costs would be excessive and dwarf any incentives we provide now to move to cleaner and healthier vehicles. We now have an opportunity to save money in the present, (e.g., through locally produced electricity and lower maintenance vehicles), while simultaneously reducing costs for electricity, transportation, and healthcare. In the long run, we can create a healthier and greener Vermont.