The Everyday Economist

Tim Haab on gas prices:

The real question CNN should ask is: What can you do about $4 gas? There is only one answer. “Drive Less”. You as a consumer have control over your own gas purchases and little over the market price. The choice to drive less may be uncomfortable, but all the whining, crying and shouting for the government to do something will only make the situation worse. Price controls, gas rationing, windfall profit taxes, gas tax holidays…are all bad policies that may make you (and politicians) happier in the short run but will make everyone miserable in the long run. Your solution to high gas prices is to adapt. Drive Less! If the market adjusts, all the better, you’re saving even more money.

Indeed.

Chrysler is promising to fix the price of gas for $2.99 per gallon for new customers. Justin Ross explains the perils of the “deal.” My favorite quote:

I hope Chrysler customers will be allowed to put their cards up on e-Bay, this would be fun to watch unfold over the next three years.

Indeed.

CNN reports:

In a typical family sedan, every 10 miles per hour you drive over 60 is like the price of gasoline going up about 54 cents a gallon. That figure will be even higher for less fuel-efficient vehicles that go fewer miles on a gallon to start with…

I have contemplated this concept many times during my commute as it consists of mostly highway driving where the speed limit is 70 miles per hour. I have a 6-month-old son at home and when I am not spending time with him (and my wife), I am teaching, studying, doing research, reading, blogging, or catching up on the world of sports. Any time spent otherwise is time away from these activities. In other words, since I highly value my time, I am not willing to spend a great deal of time doing things that detract from these activities. While I have never taken the time to figure out precisely how much it would cost me to slow down, it is undoubtedly not enough to compensate for the lost time.

HT: Environmental Economics