The American economy has suffered many financial blows in the recent years, but none have such a drastic and heavy effect on the average American than the rising gas prices. A solution to the Gas Crisis, a new and formidable crisis involving the high cost for gasoline powered transportation, must have widespread results across American commuters to either increase the efficiency of drivers, drastically lower gas prices, or provide alternate modes of transportation, consequently allowing for American commuters to be able to efficiently transport themselves at a moderate price. Gas prices are extremely high with respect to the overall timeline of gas prices, and expected to increase greatly. The average American drives 13,746 miles per year (“Average Annual Miles per Driver by Age Group”). At the time of this report, the average price per gallon (across America) is $3.707 (“AAA’s Daily Fuel Guage Report”). The average American passenger car MPG, or miles driven per gallon, in 2008 is 22.6 miles per gallon (“Table 4-23: Average Fuel Efficiency of U.S. Passenger Cars and Light Trucks“). Using simple mathematics, one can find that, if gas prices and average miles per gallon remain static, the average American would be spending $2,254.71 per year on gas. That’s almost 5% of the average American house hold income (“Average Annual Miles per Driver by Age Group”). These numbers are only valid if the gas prices remain static, however there is an unfortunately high chance that they will continue to increase in the future. Yes, the average MPG will also increase, however at a slower rate than the increase in price of gas per gallon. With the current conflict in Libya and in much of the Middle East, the limit to which gas prices can ... ... middle of paper ... ...le&node=&contentId=A16228-2002Jul16¬Found=true> “AAA’s Daily Fuel Guage Report”, Oil Price Information Service; AAA. N.p., 6 April 2011, n.d. . “Average Annual Miles per Driver by Age Group”, Federal Highway Administration, N.p., 6 April 2011, 4 April 2011. . “How much does the Average American Make? Breaking Down the U.S. Household Income Numbers“, FedUpUSA, Stephanie, 6 April 2011, 7 January 2010. . “Table 4-23: Average Fuel Efficiency of U.S. Passenger Cars and Light Trucks”, Research and Innovative Technology Administration, N.p., 6 April 2011, n.d. .
Stone, Chad, Danilo Trisi, Arloc Sherman, and William Chen. "Center on Budget and Policy Priorities." A Guide to Statistics on Historical Trends in Income Inequality. Center on Budget and Policy Priorities, 6 Nov. 2013. Web. 03 Dec. 2013. .
Gasoline is one of the many conversation starters anywhere you go. People have different opinions on why gasoline prices are fluctuating at such a rapid pace. Some Americans have chosen a way of thinking towards the prices. Whether it be making up rumors or just plainly trash talking towards our government. You make ask yourself the same questions many economist do, why has the price of oil been dropping so fast?
I am a husband and a father of four lovely children. We need a large vehicle to haul all of us around town. And of course I would do anything to keep them safe and I always want to provide them with the best. Therefore, after the birth of our fourth child two and a half years ago, my wife and I decided to upgrade our Ford Explorer to a Ford Expedition. We got everything from the side-curtain airbags to the TV and DVD player. What we did not know was we also purchased a rather large unleaded gas bill. The first time we filled the tank it cost us roughly $35; today it costs us right around $75 to fill the tank. Obviously the price of gas has increased significantly in the last two years. The price increase is due to a fluctuation in the supply and demand of not only gasoline but also crude oil, which is needed to manufacture gasoline. In addition, several other factors are influencing a change in the price of gasoline.
For over 100 years, the automobile industry has relied on gasoline as its main source of fuel. Gasoline is a colorless, highly flammable substance used in internal combustion engines. It is a fossil fuel made from crude oil, a natural gas formed from the remains of ancient plants and animals (Webster‘s Dictionary). Gasoline has positively influenced our way of life by providing convenient, on demand transportation. It has created a global economy that moves people and goods faster and more easily than ever imagined (Povey 12). Although a seemingly perfect substance, it has unprecedented flaws. The tremendous political, environmental, and economic problems resultant from the excessive use of gasoline leads to the conclusion that the automobile industry should not continue to rely on this source of fuel.
www.fueleconomy.gov: The official U.S. Government Source for Fuel Economy Information. U.S. Department of Energy, 5 Jan 2012. Web. 5 Jan 2012.
“A Guide to Statistics on Historical Trends in Income Inequality.” cbpp.org. Center on Budget and Policy Priorities, 2013. Web. 06 April. 2014. .
Fuel prices is an area of concern for the motor carrier industry. Fuel prices are at an all-time high, driving the industry to make drastic changes. Individuals in the industry believe that by reducing the demand for fuel is the best way to address the current fuel issue. One of the leading alternatives to this fuel issue could be natural gas.
The top 5 percent of households earned $864,394, or 88 times as much as the poorest 20 percent, according to the Census Bureau’s American Community Survey.
West, Jim. ?Different Views of Gasoline Taxes.? The Oil and Gas Journal August 14, 1995: 9.
Currently, the most important factor in the rise of gas prices is the increasing cost of crude oil. Unfortunately, the United States has three percent of the world’s oil reserves. (Horsley) In 2009, the United States was third in crude oil production as well as the world’s largest petroleum consumer. (e. I. Administration) Such consumption required and still requires the United States to import petroleum/crude oil from other countries.
oil and gas are used up each year so that Americans can drive at high speeds across the
The future American commuter will undoubtedly have to transition from the use of fossil fuels to new alternatives due to the diminishing availability of the nation’s oil resources. How will America respond to this upcoming issue? It is difficult to predict which alternative fuel source America will ultimately choose, but with the premier of Nissan’s electric powered Leaf and other companies; such as Tesla Motors and Chevy, with their electric cars ready for market, the electric car may be winning the race to become the new standard for the gasoline alternative. Electric cars resolve long standing environmental issues, but it will need to maneuver around many roadblocks to become a marketable consideration for the general public. The cost of electric cars, currently on the market, makes them an impractical purchase for the average consumer. If cost is not the growing concern in today’s economy which prevents the consumer from considering this option; they may deny the technological advance due to battery storage capabilities and the inadequate infrastructure in place to refuel and provide for them.
The article by Mike Moffatt shows the price elasticity of demand for gasoline. According to Molly Espey the average price elasticity of demand for gasoline in the short- run is-0.26 and -0.58 In the long-run, which is a 10% raise in the price of gasoline lowers quantity demanded by 2.6% in the short- run and 5.8% in the long- run.Also, there are a studies were conducted by Phil Goodwin, Joyce Dargay and Mark Hanly at review of income and price elastics in the demand for road traffic and each of them has different study. Furthermore, the realized elasticities depend on factors such as the timeframe and locations that the study covers. If the gas taxes will rise, will cause consumption to decrease.
The substantial increase in the demand for EV’s came just in time as we are slowly but surely running out of oil. Some estimate that by the year 2040, 35 percent of all vehicles will be electric (Sullins, 2017). An article from the U.S. Department of Energy stated that “Electric vehicles hold a lot of potential for helping the U.S. create a more sustainable future. If the U.S. transitioned all the light-duty vehicles to hybrids or plug-in electric vehicles, we could reduce our dependence on foreign oil by 30-60 percent, while lowering the carbon pollution from the transportation sector by as much as 20 percent (energy.gov, 2014). It’s obvious that gas-powered vehicles have harmed our planet with their emissions. Although EV’s cannot reverse that damage that has been done, they can eliminate, or at least slow down, the inevitable demise that our planet is headed towards. Along with the beneficial environmental factors that correspond with electric cars, there are also beneficial financial factors. The average American spends about $2,000 on gas annually. In the future, charging stations will charge roughly $12.00 for a full charge, which is about 300 miles. This means that the average American will save about $1,400 per year on these specific car
Today, people use their own personal vehicles to travel more than ever before. Personal transportation is no longer considered a luxury; it is now considered a necessity. The number of cars in the United States has been growing steadily since the 1970s. The number of miles traveled by cars has risen nearly 150 percent, yet the United States population has only grown roughly 40 percent during that time (hybridcars.com, Driving Trends). Although it may seem like we are advancing into the future, in reality, we are moving backwards from the effects these vehicles have on our bodies and the environment. The pollution produced by these vehicles has brought us to the day where we must find other modes of transportation that cause less harm to the world in which we live. Advances in technology have developed hybrid vehicles to try and slow down the amount of pollution. Driving a hybrid vehicle, instead of a conventional gas powered vehicle, can reduce the amount of pollution that affects our lives and the environment around us.