Does $1/Gallon Gas Cost us More?

Lots of people are speculating about the future price of gas, but like the future price of anything, it is not an exact science. In less than five months, gas has fallen from an average of $4.11/gallon to $1.66/gallon. That is great news for most Americans as a $20 bill can almost fill up your tank again, but is it also a sign of a weak economy? Will low gas prices cause people to stop buying fuel efficient cars? Some have suggested a gas floor imposed by taxes. This money could be used to fund investments in alternative energy. I know that I am breathing easier with under $2 gas, but I am also wary of the future. Your thoughts?

Two of The Greeniuses contributors, including myself, "growed up" in Polk City, FL, a town of little more than a thousand people.


View Larger Map

I have never considered the city management to be conservation minded, but I may have to change my opinion after reading this article. In an effort to encourage water conservation, they are setting up a tiered rate system to reward those who use less water. I know I am always saying this, but people respond to conservation efforts that benefit them financially. I currently pay a flat rate for water up to 8,000 gallons/month, which I never go over, but I think it's unfair if I only use 2,000 gallons. Are a lot of municipalities changing to this system? Do you think it will reduce water usage?

I admittedly know nothing about the harvesting of algae for use as a biofuel, but the prospects sound promising. This Wired article outlines a defense department initiative to study the prospect of turning algae into jet fuel. According to the article, it is much more efficient for use as a fuel than corn, and it's use wouldn't increase the price of a food crop as not too many people are eating algae these days. Again, this is the type of research that is necessary now, but with fuel prices dropping, I hope it will continue to be funded and pursued.

2 comments:

Matt Stambaugh said...

Wow, I'm proud of old Polk City. First you blow my mind by saying that they have curb-side recycling and now this water ordinance. Awesome. For those readers who don't know, Mike and Trevor's hometown Polk City is a small and very rural town in central Florida. How do you know the Green Revolution is happening? When stuff like this happens in Polk City.

As for the gas issue, taking a long view I do think that higher gas prices are a good thing. I think we should have a price floor, but should subsidize small businesses and the poor so they aren't hurt by it.

As for algae as fuel I have read bit about it and it is very promising. I also read a Wired article about 6 months ago about switch grass, which is another alternative to using corn for biofuel. The article said the trouble was breaking down the thick cellulose walls of the switch grass, but once they got past that it would be a godsend.

Michael Lombard said...

As a born & raised Polk City resident (unlike that Johny-come-lately immigrant Trevor), I can say with certainty that the only way this initiative will survive is if Bo & Luke can foil Boss Hogg's crooked water-stealing scam. Otherwise it's a good idea!

As for the gas price, I'm all for a gas price floor. Start it low and put out a schedule of increases to let everybody know what's coming. That should give folks time adjust their driving habits and trade in their SUV's. Of course, it would help if our tax dollars went towards building more mass transit and subsidizing fuel-efficient vehicles.