Climate Climate & Energy

Gas prices

It's an open question how much gasoline prices affect gasoline consumption. But apparently gas prices are pretty tightly correlated with something else. Click to find out what.

(Via Tapped)

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More!

About a week ago I did a short post on Prius/oil-related matters that seemed to irritate a few folks. I hadn't noticed until today that our occasional contributor (and pundit nonpareil) Clark Williams-Derry posted a response. He seemed to be approaching the question the same way some other people did, so I thought I'd offer a reply.

To recap:

A Wall Street Journal editorial (sub.) said this:

Petroleum not consumed by Prius owners is not "saved." It does not stay in the ground. It is consumed by someone else. Greenhouse gases are still released.

Treehugger's Lloyd Alter said (I paraphrase): What a jerk.

I said (again paraphrasing): Yes, he's a jerk, but on this narrow point, he's right.

Several commenters thought I was making a point about the futility of energy conservation generally. But I wasn't -- the point is about oil in particular.

Bart, and at greater length Clark, mentioned the "rebound effect," whereby reduced demand lowers price, which subsequently raises demand. Both of them make the point that although the rebound effect is real, demand only bounces back about 30-50%. So, while using less oil may not make the total efficiency gains you'd want, it does make some efficiency gains. It does save some oil.

To which I say: For "energy" generically, yes. For electricity, yes. For something like coal, where supply is plentiful, yes. But oil?

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Calming down the hybrid hype.

Treehugger mocks this, from the notoriously hack-a-rrific Wall Street Journal editorial page:

Petroleum not consumed by Prius owners is not "saved". It does not stay in the ground. It is consumed by someone else. Greenhouse gases are still released.

I'm all for mocking the WSJ editorial page, but this statement is quite true. Oil supply and demand are tightly coupled right now and are only going to get more so. Any dribble of oil you don't use will be snapped up by someone else -- perhaps one of the growing legion of Chinese drivers -- and so on and on until the remaining oil becomes prohibitively expensive and forces the market to provide alternatives.

It would be nice to think that environmental sentiment could free the world from oil, but it'll never happen.

If your goal is to save money or save oil, buying a Prius should be far down your list.

Buy a Prius, if you like, to express your values and make a statement to manufacturers that there's a market for these kinds of cars.

But let's not let the hybrid hype get out of hand.