The Price of Gas

Gas prices have fallen about ten percent since the Fourth of July holiday, but they’re still much higher than a year ago.  Over the summer, many employers and colleges implemented four day work week schedules in order to relieve the cost of commuting.  Some community colleges have reported distance learning enrollment increases of nearly fifty percent from a year ago.

Reducing gasoline consumption is one way to lower costs and perhaps, by reducing demand, reduce the cost of fuel.  Perhaps, it’s best to also take a look at what’s occurring around the world to see what the longer term trends may be.  In May, the New York Times reported that the average price for gas in France and Spain was $8.20 per gallon, leading to protests in major cities in both countries.  The fuel prices in most European countries are driven by government taxes comprising as much as half of the cost per gallon.  In turn, the higher gas prices forced consumers to cut their gasoline consumption years ago.  Drivers own fuel-efficient vehicles such as Smart Cars and Minis and most cities have highly efficient and developed public transportation systems.  Additionally, large cities such as Copenhagen and Barcelona have developed bike paths as part of the commuting alternatives.

When I visited Italy this summer, I was amazed at the number of people riding Vespas and other scooters.  Those vehicles get at least fifty miles to the gallon and one fourth of the owners/riders are women.  There are sections of the streets in downtown Rome and Florence that are reserved for parking for motorcycles only.  In some areas, it appears that the motorcycles on the road equal the number of cars.

It’s time that we reach a national consensus on energy consumption and alternatives.  Some of the more costly alternatives, such as solar panels, can only decrease in cost as the production runs increase and for production runs to increase, we have to increase demand.  Income tax incentives are one way, but even then only a few people benefit.  Improving infrastructure for rail commuters and providing additional bus routes are other possibilities.  Until the governments step in with solutions to some of these issues, consumers may choose to take a faster route and purchase more fuel-efficient vehicles, either autos or scooters.  Companies may encourage car pooling, four day work weeks or even tele-commuting.  As the President of an online institution, I also like the idea of more students taking classes online.  That can definitely save commuting costs and cut down on carbon emissions.

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