Fake vanilla is actually not made from coal-tar, it's made mostly from wood-tar creosote or wood lignin. The simple fact is coal-tar..aka coal is not cheap, wood is. Coal-tar is still used in some 3rd world countries but not really in the US anymore because of the cancer causing concerns.
They are some "horror" stories of things like cow poop being used but if you buy any imitation vanilla labeled natural or made with natural flavors it can't legally have been made with cow poop. It also used to commonly be made with waste wood pulp from the paper industry but due to much much less virgin paper waste thats not done anymore either.
Most imitation vanilla sold in the US is made of things that are safe to eat...wood products, clove oil, cinnamon, fermented bran, etc.
Now I know you are thinking wood-tar doesnt sound better, well really if you every have a bonfire, wood burning fireplace, eat smoked foods, etc anything with wood burning you're already exposed to more wood-tar creosote then your getting from that teaspoon of fake vanilla in those 24 cookies you made. Much like real vanilla is only made with 10% vanilla bean, imitation is a very small percentage of the liquid in the bottle.
Part of the reason I'm fine with imitation vanilla is because real vanilla extract actually gets most of its flavors destroyed when heated or baked. Vanilla is usually a flavor enhancement no the primary flavoring in most things we cook. All that said I do have real vanilla I use to make ice cream.
If you feeling weird about eating wood products, don't wood is very safe to eat and is in a lot of our foods. A side note...most activated charcoal is made in similar ways was the material used to make fake vanilla flavoring.
If you ever want to stop eating anything you dont raise, butcher, farm, can, preserve, make yourself...go read FDA laws and food processes. A good one is look up how maraschino cherries are made, then find someone who worked at a place they were made and can tell you all about the things(animals included) they pulled dead out of the tanks. DH has worked at those, a pickle factory(more ew) and commercial slaughter plants for the number one beef and pork producer/s(really the same company) in the country.