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High Fuel Costs and "A New Rationalism"

by Lloyd Alter, Toronto on 06.17.08
Business & Politics

damn hippy ad for treehugger photo<br />
It's fascinating to see how all the things we have ranted about for years become mainstream not because people want to save the planet, but because they need to save money. Some people promote environmentalism by making us afraid; others with pictures of stranded polar bears; Graham built TreeHugger to make it cool and aspirational. We can go on (and did) about McMansions and SUVs and even compact fluorescents, but when electricity costs double and fuel hits four bucks a gallon, the market quickly does what four years of green whining couldn't.

Charles Wheelan, author of Naked Economics, writes at Yahoo Finance " there are still a lot more shoes to drop as the result of high oil prices. We've only seen the first wave of behavioral changes. If gas prices stay high -- and I have every reason to believe they will -- then we can expect a series of other social changes that are less obvious and longer term.

He makes a series of suggestions for the "long run":

1. Dump the McMansion.
2. Firms might begin to make business location decisions based on the commuting costs of their workers.
3. If you add it all up, the next several decades will be relatively good for cities -- at least compared to the last half century.
4. There will be a huge "first mover's advantage" in alternative energy.

He concludes:

"There is some irony in all of this. "Smart growth" advocates have been calling for these kinds of policy changes for decades: More redevelopment in existing urban centers (as opposed to new "greenfield" sites far from existing infrastructure); higher-density housing around transit modes; more coordination between new housing and public transit; and so on. It's ironic that $4 gas will encourage all of those things for reasons that have nothing to do with altruism.

Of course, it's also true that if we'd implemented more of those policies in the past, such as more investments in public transit, then high gas prices wouldn't be biting us as much as they are now." ::Yahoo Finance

Comments (12)

I find that often, the general public -- whether it be world-wide, or where I see it most, office-wide -- doesn't realize the need for change until it's too late where it starts personally effecting them.

I admit that I'm relatively new to trying to lessen my footprint, but I'm not surprised that only now, as we're all being effected by crazy prices for things that we've been taking for granted, are people hopping on the green bandwagon.

jump to top linkblue says:

All environmental decisions are actually economic decisions, we just choose not to believe it in many cases. The reverse is also true.

Cheap manufacturing? From here or from China, the cost is cheaper partially due to cheaper environmental regulations. BUT lo and behold they produce more toxins that get into the environment and we eventually will pay for that in the form of higher health care costs.

Cheap fuel? Well, the global warming catastrophe we're currently in shows how much that actually costs. More powerful and more frequent storms mean higher insurance rates, higher taxes (for emergency response, emergency cleanup), higher emotional costs (casualties).

The list goes on and on. We eventually pay for EVERYTHING that we think is "cheap". It's really a question of whether we realize it or not.

jump to top trebuchet says:

I have been saying for a long time on the forums and to friends that the in order to get large scale movement, it has to be economical. Most people aren't going to do what is "right" merely to be a good citizen if it costs them more. But give them the "right" choice that is lower cost and they'll quickly change. It's not rocket science. Heck, you don't even have to convince people that it's "right"... just show them the economics.

Brian

jump to top Brian says:

Llyod has clearly hit the bulls eye by pointing out the issues .
we can expect a series of other social changes that are less obvious and longer term as a result of higher oil prices..Policy changes , social patterns are all governed by economics and energy being one of the primary resources for growth , sustained high prices would have impact on all.

jump to top Amaan Goyal [TypeKey Profile Page] says:

Markets accomplish like magic what the political process cannot, no matter how much blood and tears our rulers spill.

Free people don't need to be forced to take good advice. Free people have the motivation and means to live sustainable lives *automatically* - first choice, easy choice, no-brianer.

Tax slaves - impoverished by debt, shackled with regulation, abused and misdirected by soulless bureaucracy - can scarcely be expected to take the long view, nor do they.

For a greener world, distributed, localized, voluntary government is the ONLY answer. Sooner would be better than later.

jump to top Jean Paul [TypeKey Profile Page] says:

I want to be a libertarian, I really do. I would love to assume people make decisions based on accurate information and a moral code. But they don't. They make decisions based on what they want in the moment. I want a hummer because its cool, even if I live in Pittsburgh and will never have a need for 4-wheel drive let along ground clearance. The fact is that "Free People" do need to be forced to take good advice. You can certainly argue that people today aren;t free and I wouldn't deny that. People need a lot more education (and I mean good public schools not more time in college) to make informed decisions. In this case it is price that is forcing them, not regulations, but the affect is the same (though much more painful this way).

I completely agree with you on small local government though.

jump to top Pat says:

This crazed rhetoric is what drives people away from the environmental "movement" period. It should not even be called a movement.

People are only going to support changes to their daily usage of energy and the products they buy when they are presented with a financial reason to do so. Look at the words in the title of the article.... Rationalization.

People are logical, which is the reason they are not going to shell out their hard earned money for some product that is just a gimmick (see carbon off set cards at the Whole Foods).

When you present someone with a product that is better than what they used to buy and happens to be made in a earth friendly way than the designer of that product has succeeded.

But when you act like a smug jack@ss because you eat only organic, or bought a hybrid car (which are actually worse than regular cars), all you are doing is making people want to combat you.

This has absolutely nothing to do with government or weak internet poetry. This is about making saving the planet help save money

jump to top erik says:

If you follow good advice, you tend to get rewarded. If you disregard good advice, you tend to get hurt. Over time you learn to sort the good from the bad, for the simple reason that its nice to get rewarded and it sucks to get hurt.

Multiplied by millions of people making millions of decisions across lifetimes of learning, the outcome is automatic: free people eventually mostly do the right thing for themselves and each other - faster, better, and cheaper than if they are forced against their consent.

Remember - the smallest and most local government of all is the individual. Kings and nations are never an improvement over neighbors and homesteads.

jump to top Jean Paul [TypeKey Profile Page] says:

And coming from those same douche bags that insist all compact car owners are "gay", their words not mine. Priceless! :D

I'm curious as to why erik thinks hybrids are worse than regular cars.

Regardless, I like to think of it as humanity's adolescence: all the things mother nature used to do for us, we are going to have to do for ourselves. No more free lunches. Yeah, it is going to have a cost. It might even be hard. But not nearly as hard or as high-cost as the "easy way" of doing nothing.

jump to top Anthony [TypeKey Profile Page] says:

Two words: Ecological Economics.

Ban cars.

jump to top Hann says:

Does fault lie with the mainstream for not falling in line with environmentalist ideology, or does it lie with the environmentalist movement for speaking in terms the mainstream doesn't understand.

In any issue regarding justice, we have to learn to speak the language of those with the power. In today's world, that is in the language of the almightly dollar. Who cares that people are taking action just to save money, at least they're acting.

jump to top cat says:

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