Imagine for a second that oil prices in the USA today were at the same levels as those in Europe, and have been from the start. And yes. That means gasoline for $8 per gallon.
How would the world look like? Would we have a war in Iraq? Would we have a better climate? Would we have less terrorism? Would the US economy be in a better shape?
Chris Pummer, from MarketWatch, says that the increased gas prices in USA should be celebrated.
“Americans should be celebrating rather than shuddering over the arrival of $4-a-gallon gasoline. We lived on cheap gas too long, failed to innovate and now face the consequences of competing for a finite resource amid fast-expanding global demand.”
He also believes that $8-a-gallon gas would do the USA, and the rest of the world good.
“A further price rise as in Europe to $8 a gallon – or $200 and more to fill a large SUV’s tank – would be a catalyst for economic, political and social change of profound national and global impact. We could face an economic squeeze, but it would be the pain before the gain.”
But let’s get back to the question I asked first. How would the world look like if USA had similar gas prices as those in Europe?
Well, besides the war in Iraq and terrorism, we don’t really have to wait to see how the world could look like. We can see it already.
SUVs and other gas-guzzling cars have dropped enormous in sales, as well as in value, lately. It’s like they have been put on the endangered species list.
“If gas prices stay where they are at or continue to rise, the body-on frame SUV is an endangered species and the pickup truck as a personal car is an endangered species.”
“When they find out what you think their truck is worth, they think you’re trying to rip them off or something. Small cars are gone within a week; SUVs are sitting here since last summer.”
Americans are already now leaving their cars at home in favour of public transportation or car-pools.
The Federal Highway Administration (FHWA) recently released their March 2008 report and it shows a massive decline in driving. In contrast to the trend the past 25 years the 4.4% drop sure says a lot.
“2008 marks the first time since 1979 that there has been a drop in miles travelled in over the month of March. This drop corresponds to 11 billion less miles traveled, according to FHWA. Over the first quarter of 2008, greenhouse gas emissions from the transportation sector have also dropped 9 million metric tons compared to past years, something that no amount of political posturing has yet to accomplish.”
Let’s hope that the gas prices keeps increasing but also that our politicians helps to ease the pain that comes “before the gain” with smart and long lasted solutions (and not short-sighted and stupid ones).
Image credit: Futureatlas.com. Image licensed under a
Creative-Commons Attribution license.
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