High Gas Prices Do NOT Make Effective Energy Policy
Posted by Sonja Ebron
Economists define market “demand” as the desire for goods or services by those who can pay for them. Demand for goods and services does not include the needs of those who can’t afford them. Gasoline at $4 a gallon has resulted in less driving, what economists call “demand destruction.” The polite explanation is that high oil prices send the economy into recession, and an economy in recession needs less oil. In private, though, most analysts assume people are foregoing summer road trips and other types of discretionary driving.
But some of that destroyed demand is from people who must drive to work or to the day care center or to the grocery store to make their lives work. The biggest reason people drive instead of using mass transit, which has always been far less costly than driving, is that it generally takes less time to get from Point A to Point B in your car, and you’re on your own schedule. (You leave when you need to, and you break traffic laws when necessary.) If you work three jobs, or are self-employed and meet customers at their locations, or are a single parent with just too much to do each day, you simply cannot use mass transit. So when your demand is destroyed, you take a big hit.
Engineers Are Lazy Bloggers
Posted by Sonja Ebron
We started this blog last December, and I have managed a grand total of six posts since then. That’s just lazy, right? In truth, I’m one of the hardest working women in energy, and I have too much to do. Ramping up a new sales program for our utility services, developing a training module for our summer interns, maintaining inventory and getting the right stuff timely shipped to the right people, driving traffic to our website for More Money, and the list goes on… got a sista burning both ends of the candle.
But this blog is important for lots of reasons, mostly because I get to remember — and tell you –what we’re all about. So I’m committing myself to more frequent posts, starting now. Of course, I also remember why I became an engineer: I want to work smart, not hard, so I always try to think of ways to get the job done with the least effort. In that vein, I’m re-posting a piece I wrote three years ago on the need for Black leadership in the energy field. How’s that for lazy? Anyway, it’s about a speech I gave on the topic to the American Association of Blacks in Energy. I was preaching to the choir. Here goes:
