Editing Subsidy (section)

===Environmental externalities===
{{See also|Climate change mitigation|Environmental economics|Environmental protection}}
While conventional subsidies require financial support, many economists have described implicit subsidies in the form of [[Pigovian tax|untaxed]] environmental [[Externality|externalities]].<ref name="Myers 1998a" /> These externalities include things such as pollution from vehicle emissions, [[pesticides]], or other sources.

A 2015 report studied the implicit subsidies accruing to 20 fossil fuel companies. It estimated that the societal costs from downstream emissions and pollution attributable to these companies were substantial.<ref name="hope-etal-2015">{{cite book
 | first1 = Chris
 | last1 = Hope
 | first2 = Paul
 | last2 = Gilding
 | first3 = Jimena
 | last3 = Alvarez
 | title = Quantifying the implicit climate subsidy received by leading fossil fuel companies — Working Paper No. 02/2015
 | year = 2015
 | publisher = Cambridge Judge Business School, University of Cambridge
 | place = Cambridge, UK
 | url = http://www.jbs.cam.ac.uk/fileadmin/user_upload/research/workingpapers/wp1502.pdf
 | access-date = 27 June 2016
 | archive-date = 28 March 2016
 | archive-url = https://web.archive.org/web/20160328192509/http://www.jbs.cam.ac.uk/fileadmin/user_upload/research/workingpapers/wp1502.pdf
 | url-status = dead
 }}</ref><ref name="judge-business-school-2015">{{cite web
 | title = Measuring fossil fuel 'hidden' costs
 | date = 23 July 2015
 | url = http://insight.jbs.cam.ac.uk/2015/measuring-fossil-fuel-hidden-costs/
 | website = University of Cambridge Judge Business School
 | access-date = 27 June 2016
 | archive-date = 26 June 2016
 | archive-url = https://web.archive.org/web/20160626134335/http://insight.jbs.cam.ac.uk/2015/measuring-fossil-fuel-hidden-costs/
 | url-status = live
 }}</ref> The report spans the period 2008–2012 and notes that: "for all companies and all years, the economic cost to society of their {{CO2}} emissions was greater than their after‐tax profit, with the single exception of [[ExxonMobil]] in 2008."<ref name="hope-etal-2015"/>{{rp|4}} Pure coal companies fare even worse: "the economic cost to society exceeds total revenue (employment, taxes, supply purchases, and indirect employment) in all years, with this cost varying between nearly $2 and nearly $9 per $1 of revenue."<ref name="hope-etal-2015"/>{{rp|4–5}}