Send tips to Curtis Black, Newstips Editor
curtis@newstips.org
NEWSTIPS HOME | About | Follow on Twitter @ChicagoNewstips


Gas prices

Dean Baker of CEPR thinks the media should challenge politicians who call for no-holds-barred domestic drilling as a solution to rising gas prices.

He does the numbers – the U.S. has petroleum reserves of 22.3 billion barrels and consumes 6.9 billion barrels as year.  Given the requirements of exploration and drilling, “in the most optimistic ‘drill everywhere’ scenario, we would save less than 20 cents from our $4-a-gallon gas.”  Quite likely much less.

Opening the nation’s strategic reserves “will at best buy us a couple of months nationally, with no assurance of relief here” in the Chicago area, according to Scott Bernstein of the Center for Neighborhood Technology, writing at Planetizen.

Bernstein points out that a 10-cent increase in the price of gas costs the Chicago area economy $240 million a year, and “financial pressures caused by rising gas prices may push households coping with unemployment and underemployment in even greater financial distress.”

It’s a lot worse for residents of areas with less access to public transit and less proximity to jobs and shopping.  Looking at the period from July 2000 to July 2009, when local gas prices rose from $1.99 to $4.30 a gallon, CNT found that transportation costs in well-served, “location efficient” communities rose from 9.7 to 12.6 percent of personal income; in less convenient places, transportation costs rose from 27.9 to 35.8 percent of income.

That’s a good argument for a national infrastructure bank which could accelerate local transit improvements, Bernstein writes – and for a range of practical strategies, from tax breaks for transit use and carpooling and car-sharing, to maintaining transit service and creating a comprehensive plan for regional transit.

We might be closer to realistic solutions if we made it a little harder for politicians to spout nonsense.

Print this Post Print this Post

Category: economy, energy, transportation

Tagged:

Comments are closed.


Get Newstips in Your Inbox!

Enter your email address:


Subscribe in a reader

Archives

*

*

*



*










CAN TV is a network that belongs to the people of Chicago.  For updates on local programs, and live, timely coverage of community events, sign up at http://www.cantv.org