Friday, October 26, 2012

How we can change gas prices

How we can change gas prices

Personally, I don't care how much gas costs per gallon.  In fact, I would like to see gas prices increase even more.  I would even support a hefty tax on gas to pay for the roads and other infrastructure.  To me, that idea is much better than toll ways.

The reason I like high gas prices is because that is when I start to see a change in people's behaviors.  For example, the last time gas prices increased substantially my neighbor with the massive quad-cab, four wheel drive, ten mile per gallon, Ford pick-up which he uses to go to the doughnut shop or church, bought a small Volkswagen pickup to serve the same purpose. But once gas prices dropped, the gas sucking Ford came back out.

A few weeks ago I had a discussion with a woman in which she complained about gas prices.  Afterwards she drove away in her shiny new Cadillac Escalade (14 mpg city, 18 mpg highway). 

If we want low gas prices the best way to do that is reduce demand.  One way to reduce demand is to demand high gas mileage vehicles.  And, if prices don't drop but we are driving highly efficient vehicles we are still spending less for gas plus reducing dependence on foreign oil.

When we go to a car dealership and drive off the lot with a 14MPG vehicle we have told the auto industry gas mileage does not matter.

But, when those inefficient vehicles sit on the lot unsold, we have told the auto industry gas mileage does matter and they will act accordingly.

The government has Corporate Average Fuel Economy (CAFE) standards which is great and needed.  But the consumer can do more by making gas mileage one of the main criteria for buying a car.

So, how can we change gas prices?  We can reduce demand.  Don't complain about gas prices, complain about gas mileage.