In Search of a City: $20 Per Gallon, Part 2
Tuesday, September 28th, 2010
The first chapter of the book $20 Gasoline, reveals nothing unexpected. Its title is “Chapter $6.”
Americans got a brief taste of things to come in 2008, when gasoline prices topped $4. The experience at $6 will be a more intense version of 2008. According to author Christopher Steiner, SUVs will be worth nothing. Diesel engines will be fully embraced by Americans. Highway deaths will be reduced dramatically. Obesity rates will drop as more and more people walk to transit stops and bicycle.
As in 2008, Americans will use mass transit in record numbers as $500 monthly gasoline expenses jump to $1,200. A drop in gasoline consumption will result in a drop in gasoline tax revenues, and the government will not be able to keep pace with roadway maintenance. In an effort to generate maintenance revenue, highways will become toll roads, further reducing their use.
Although denial runs deep with Americans, people will accept that rising gasoline prices are not temporary, but permanent. Adjusted for inflation, crude oil prices hit their historic low prices in 1998. Rising demand for gasoline among 1.8 billion newly middle class people in places like China and India will change energy use forever.
I have a pet peeve about the use of statistics, and an article in the Saturday (January 16) Columbus Dispatch made me peevish. The Dispatch ran an article entitled,