Thursday, July 17, 2025

AI Benefits Will Often Show Up as "Externalities" (What is Enabled)

Every important new technology, and especially all general-purpose technologies, have benefits and “costs” (externalities), though most would likely assume that, on balance, every GPT brings more benefits than costs. 


Some of us assume that will be true for artificial intelligence as it has been the case for earlier GPTs. 


Quantified Benefits and Externalities of Electricity Use

Category

Benefit / Cost

Estimated Value / Impact

Economic Output Enabled

Benefit

>$20 trillion globally (approx. 25%+ of global GDP tied to electricity-enabled sectors)

Job Creation

Benefit

~25 million direct and indirect jobs globally (generation, transmission, electric equipment)

Household Welfare

Benefit

>1 billion people lifted out of extreme poverty since electrification

Time Saved (Lighting & Appliances)

Benefit

~500 billion hours annually saved globally (valued at >$5 trillion/year)

Health Improvements (e.g., refrigeration, medical equipment)

Benefit

Millions of lives improved or saved (e.g., vaccines, surgery enabled by electricity)

CO₂ Emissions from Electricity

Cost

~13.5 billion metric tons/year globally (40% of total CO₂ emissions); $1.35–$6.75 trillion/year (at $100–$500/ton social cost)

Air Pollution from Fossil Power

Cost

~3–4 million premature deaths/year; ~$2–$4 trillion in health damages (WHO, EPA estimates)

Infrastructure Costs

Cost

~$2 trillion/year (generation, transmission, distribution, maintenance)

Unequal Access (Energy Poverty)

Cost (opportunity lost)

~760 million people without access (loss of productivity, education, healthcare)

Blackouts and Reliability Issues

Cost

~$150–$300 billion/year in economic losses globally

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