Why Americans Are Driving 1M Mile Less a Day
Fri, May 9, 2008
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Opinion piece: by Ben Ray
Image from ^riza^
I’ve said it before, I’ve proved it, and I’ll say it again: the way to break an addiction to fossil fuel is to make it prohibitively expensive. Until that happens, very few people have the impetus to change their lifestyles significantly and politicians therefore, will have very little incentive to sponsor progressive legislation.
Maybe that’s why we’re not shocked but happy to see that somehow Americans are tightening the belt a notch in the face of four dollar gasoline: for the first time in 30 years, we’re driving less.
For years fuel costs have been spiraling upwards: regular unleaded was $1.20 when we started driving, back when the dollar was strong and the worst thing a President could ever do was lie in a civil deposition about an affair. The economists have speculated on TV when Americans would finally feel so much pain from them that our habits would change. The answer, apparently, is when the national average price is $3.65 a gallon.
That marks the highest price ever, even adjusting for inflation to include the 1970s in the mix. Paired with a weak economy, 71% of Americans say it’s causing a financial hardship and 80% believe the gas prices are here to stay. This is of course, hardly something worth celebrating. It’s the result of a failed energy and economic policy, both coming home to roost simultaneously. What matters is that we are, as a nation, learning to cut back. We’ve pointed it out once before, but we’ll do it again: Americans hadn’t cut back prior to this in 30 years. And it seems highly likely that once better fuel-efficiency is demanded, and a sensible energy policy formed as a result of this crisis, we’ll take ages to go back to the way we were before–if society as a whole isn’t transformed by then.
You never know.
[ThinkProgress][USAToday][HuffingtonPost]
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May 9th, 2008 at 9:12 pm[...] Americans are driving 1 Million miles less this year than any other since the 70s. [Environmental Graffiti] [...]
May 9th, 2008 at 5:56 pm
As your post suggests, the demand for gasoline is somewhat price elastic–when price increases, demand will decrease. However, in the short run, demand is not very price elastic–demand will not change much. In the long run, on the other hand, the price elasticity increases greatly, because high prices will lead to investment in clean energy sources, infrastructure to support public transit, etc. This means that if oil prices continue to rise, in five years, ten years, twenty years, people will reduce their demand for gasoline and opt for alternatives. Unfortunately, this doesn’t offer much relief for people today.
Thus, to speed the transition, we need to invest in renewable energy now. Some big oil companies and investors–such as BP, JPMorgan, and UBS–have begun to realize this, and are putting more and more resources into renewables. To learn more, you should check out the Renewable Energy Finance Forum-Wall Street (http://www.REFFWallStreet.com), held June 18-19 in New York City. REFF brings together investors, financiers, and renewable energy project developers to network, share ideas, and develop plans for the future. Over 40 high profile industry leaders will speak at the event, discussing topics such as solar power, wind energy, advanced biofuels, and economic and policy factors fueling renewable energy development.
May 13th, 2008 at 12:52 am
My family is helping. LOL My son and I “commute” together . .although with my job being just one mile from door to door from my home and his just over two miles, I wonder if the 10ish miles round trip we go each day can legitimately be called a “commute”. Except for the week the three of us go and donate platelets and red cells at Stanford, we put less than 100 miles a week on our car.
This is a choice, btw. When we job hunted, we had a ten miles radius.
August 12th, 2009 at 3:24 pm
Excellent post.
As you have suggested, it is a lifestyle choice and I doubt that making fossil fuels in this economic climate is a good idea.
Keep up the interesting posts.