The Grip of Gas – Why you’ll pay through the nose to keep driving. By Austan Goolsbee
Great article on why the price of gas will have to be $5 for 5 years to make any difference. People are locked in to using gas and there aren’t any alternatives. It would take at least 5 years for most people to move closer to work, buy a more efficient car, get a car pool together, etc. I’m just very fortunate that I live only 3 miles from work in an area with a mild climate so that I can bike to work. This saves on car costs, eliminates rush hour aggravation, and helps keep me in shape.
A Forbes columnist had a similar article about how the sunk cost of a vehicle is so much larger than the the variable costs of gasoline – even with the price increases we’ve seen recently.