Why we should love $5 gas (Hah!)

[Opti]

Decided to share this article I saw on MSN. I noticed the author chose to leave out all the increased costs of higher gas like food, clothing, etc.

The article:
Why you should love $5 gas
Updated: May 25, 2011, 8:10 p.m. ET

This post is by Lynn Mucken of MSN Money.

As you pump 13 gallons into your Honda CR-V -- American's best-selling SUV with 28 mpg on the highway and 21 in town -- it's nearly impossible to view the $50 you're spending with a positive attitude.

With the national average for regular at $3.81, it's easy to label oil executives as pond scum, but try to remain open-minded. Think of the big picture: Though that promised road trip to Disney World has gone up in carbon monoxide, high gas prices may actually have an upside. Not for you and your family personally, maybe, but perhaps for the United States as a whole.

What if gas hit $5 a gallon? Here are some benefits (and we're serious about most of them):

Fewer people would die on the road. The less you drive, the more likely you will survive, if the events of 2008, the year of the most recent gas price surge, are correct. In 2007, 30,527 died in vehicle accidents in the U.S., according to the National Highway Traffic Safety Administration. In 2008, that number dropped 12%, to 26,791.

This mainly was attributed to a decrease in highway speeds. Also contributing was a 2% drop in miles driven, from 3.03 trillion to 2.97 trillion, despite a 1.7% increase in the number of registered vehicles. On the negative side, with many turning to more economical modes of transportation, motorcycle deaths rose 2.6% in 2008 and bicycle deaths 1%.

Demand for high-mileage cars could grow. The key word here is "could." Hybrid sales rose quickly in 2007 as gas prices climbed, then dropped noticeably in the second half of 2008 as gas prices plummeted from over $4 to $1.60. This time around, despite gas prices climbing steadily over the past year, hybrid cars shrunk from 2.9% of new vehicle sales in 2009 to 2.4% in 2010, according to Ward's Auto. Meanwhile, sales of trucks, SUVs, crossovers and minivans rose from 48% of the market to 51% from 2009 to 2010. In addition, the average fuel economy rating of new vehicles sold in 2010 was 22.2 mpg, down from 22.3 mpg in 2009.


That proves, of course, that Americans love their big vehicles. It could turn out to be different this time around. For one thing, there will be far more gas-efficient options available, plus all-electrics like the Chevrolet Volt and the soon-to-be-launched Ford Focus Electric.

Shorter security lines. Airlines fares are extremely fuel-price reactive. Soon, hardly anyone will be able to afford to fly willy-nilly around the country or globe. You will breeze through the maze of airport checkpoints.

Less pollution. Less driving means cleaner air. According to the U.S. Environmental Protection Agency, "pollution from vehicles causes two of our worst air pollution problems, smog and carbon monoxide." There are no solid figures on how many Americans die annually from car-produced pollution, but a 2008 study by Great Britain's University of Birmingham linked pneumonia deaths to pollution from motor vehicles.

Less congestion. Ever notice how well rush-hour freeway traffic flows on the minor holidays when most of the rest of us are working? A 2% drop in miles driven can make a big difference, allowing you to drive faster, although you now won't want to. According to the Department of Energy, on average every 5 mph you drive over 60 is like paying an extra 24 cents per gallon (based on a $3.79 price).

High prices lead to lower prices. Mackubin Thomas Owens, a professor of national-security affairs at the Naval War College and the editor of Orbis, the journal of the Foreign Policy Research Institute, theorizes that if gas prices rise enough, the government will open up areas now closed to oil production and oil companies will be able to invest in more-expensive methods of extracting oil. Soon we will be drowning in the stuff, and prices will drop again.

More exercise. The Organization for Economic Cooperation and Development estimates that by 2020, three out of four Americans will be categorized as overweight or obese. So, it can't hurt to walk the three blocks to the grocery or bike to school or work.



"When gas hits $4 a gallon, a lot of people come in looking for options," said Tim Blumenthal, the president of Bikes Belong Coalition. "Bike commuting jumped 44% between 2000 and 2010, with a big part of that in 2008. Still, more than half of all bike trips are three miles or less, so we're seeing racks and baskets (sold) for those who have multiple stops to make on the way home."

According to National Defense Magazine, the cost of "in theater" gasoline to our troops in Afghanistan can range from $100 to $600. The Army estimated fuel can cost up to $400 a gallon if the only way to ship it is via helicopters. (Black Hawk helicopters get 0.74 mpg, while F15-E strike fighters get 0.41 mpg.) And that was last year's prices. Afghanistan, Iraq and Libya might get too expensive for America's taste.

Local businesses could profit. If you can't afford to drive out to Wal-Mart or Home Depot, you may be buying instead at the local supermarket or neighborhood hardware store. In addition, as the cost of transporting, say, grapes from Chile, goes out of sight, you may turn to regional farmers for your produce.

It's all about democracy. If we let up on the gas pedal, we'll starve those oil-rich despots out of existence. Oh, we import as much from Canada as from Saudi Arabia and Venezuela combined.

[8 Bit WWBG]

I was disappointed by this article. It was elementary and didn't make that many good points.

In my area, I fear gas would have to be $9 or $10 before we saw a dramatic decrease in SUVs on the road.

[sil]

Where I live, if we have more novice cyclists or motorcyclists riding to work, there will be more commuting fatalities, not fewer.

[nalto]

Not to get political, but I chuckled when I saw this because during the campaigns, then Senator Obama said gas should be right around $5 a gallon.

[whoisjohngalt]

I wish people would spend less time hating SUV's and more time on something a bit more productive

Lena

[spartyparty]

I hate SUV's, but love my 8-9mpg '69 Chevelle!

[thyme4change]

Maybe $5 gas will cause some kind of wage inflation. If you drive less than normal (like me!) then that money is gravy!

[TD2K]

A few years ago when gas went over $4 a gallon, people were trying to their larger vehicles, I remember reading some dealers wouldn't take large vehicles in trade as they couldn't move the ones they had, etc. I was on the interstate last weekend and noticed most people were doing the speed limit rather than speed limit plus 10 mph which is typical around here.

I think you'd see some major shifts if gas went up 50% to $6 a gallon. Sure, some people wouldn't change but a lot would start to re-evaluate their priorities.

[BeenThere...DoneThat...]

...slower highway speeds would be nice...

[Clifford]

From 2007 to 2008, there was a 2% drop in miles driven, from 3.03 trillion to 2.97 trillion. Fewer people on the road is safer. "The less you drive, the more likely you will survive."

So we should celebrate the job losses that actually led to the fewer miles driven as reducing traffic risks...

[Angel!]

I have a few problems with the logic of this article. I understand she is trying to focus on the positive aspects, but she is kind of twisting the data to make her point.

First, the number of deaths she listed only includes those that were occupants within a vehicle (does not include motorcyclist, bicyclists, pedestrians, etc). Motorcycle & bicycle deaths both increased ~2.5% over that same timeframe.

Second, a 2% drop in traffic is going to make absolutely no noticable difference in a commute. 2% difference in traffic can occur between a tuesday & wednesday in the same week. Those minor holidays where traffic flows better actually have 10-30% less traffic & the traffic peaks at different times, so at the peak point in the day of traffic you would actually have 15-40% less traffic on the road. Even moreso on roads with high business or school traffic.

Third, high speed doesn't contribute to the death rate as people think. The death rate has been dropping consistantly since the 1990's, but we aren't driving slower. The only study I am aware of that shows the death rate should drop with higher gas prices due to lower speeds was published in Jan 2006. Based on that study, experts actually thought the death rate in 2008 would be 33% lower than the previous year, which clearly didn't happen. There is a link, but not as much as some people like to claim.

[Deleted]

Not a great article – but kudos for attempting to show the benefits of increased gas prices. Dependency on cheap, easily accessible, & plentiful gas (oil) is a cancer to American society. Even at $5/gallon, that would still put our costs well below the average for the rest of the world.

And how much effort does it take to really debate the “benefits” of cheap gas/oil in contributing to sprawl, obesity, and flat out wastefulness. Cost is 1 of the few things that will alter human behavior - Bring it on!

Tax gas to the max – maybe make a dent to our Federal debt and gasp, balance a budget along the way. And spare the spilling of our youngsters’ blood in never-ending “humanitarian” missions to oil producing regions, all so we drive whatever the hell we want, whenever we want – and Revel in the glory of air-bagged hulking metal knowing that it’s “safer” than walking.

Going on 18 years riding motorcycles and bicycles: fatality-free.

[Sum Dum Gai]

..slower highway speeds would be nice... [image]

Please god no. It's bad enough being in CA, the land of 65 MPH freeways. If they go any lower I might as well ride a freaking bike. Don't any of the rest of you have like places to be, people to see, etc? Keep 75 (which means I'll be going 82-85) Alive!!!

[LlamaLlamaDuck]

I don't like being told I should like something for virtuous reasons. Feels like somebody is trying to trick me into eating liver.