A Drive Less! success story

A close friend lives in Atlanta--you've read about this friend before here.  OK, he doesn't really live IN Atlanta, he's in Cumming, GA, 38 miles north of downtown Atlanta.  His job takes him into downtown Atlanta everyday.  He drives a Lexus into the city, running it on premium gas, and sitting in traffic--often taking 90 minutes to commute.  Gas-wise he was the Drive Less! enemy.

Was.

Last night I was talking to him and he said, "You're not going to believe this.  I'm a mass transit convert."

Stunned I asked "What made you change?"

He said, "When gas prices hit $4.40, I did the math.  I'm driving about 80 miles per day.  At 20 miles to the gallon, that's almost $18 a day.  Add in tolls and parking and I was spending $23.50 a day commuting."

Let that sink in.  $23.50 a day.  $117.50 a week.  $5,405 a year*. 

"So how are you getting downtown now?" 

"There's a luxury coach service that has a park and ride stop 6 miles from my house.  The bus is equipped with laptop hook-ups and comfortable seats.  It takes 45 minutes to get downtown and it drops me off at the door to my office.  And it only cost $5 roundtrip.  Also I'm working at home 2 days a week."

So now I'm doing the math.  That's a savings of $16.50 a commuting day ($5 in fare plus $2 in gas).  He's saving $96.50 a week.  $4,439 a year**.   That's a Jet Ski to ride on Lake Lanier--we're on our way.  Or a family vacation--he has 3 kids.  Or a motorcycle--his wife is going to kill me if she reads that.  Or a semester of college--ok not quite.  But you get the point.

High gas prices change behavior.  And that's the economics of high gas prices.

*Assuming 6 weeks vacation. 
**Not to mention the additional productive time on the commute and the additional time he can spend with his family from the shorter commute times.

Comments

[Ironman]

That sure doesn't sound like the mass transit of the masses! How long before Atlanta's MARTA throws down the gauntlet and initiates anti-competitive actions.

[odograph]

Jet Ski? Man, you are some crazy kind of Environmental Economics blog. I do see Lake Lanier Vacation Rental advertises mountain biking, canoing, and kayaking ... human powered sports, good for you and good for the planet.

Study: For Working Adults, Playing Sports Yields Higher Pay

No data on Jet Skiers, but my bigotry would be to expect a negative correlation.

[odograph]

(Dissing the Tilapia, and trading pointers on restaurants serving more endangered/mercury-laden creatures was pretty crazy too.)

[Tim Haab]

Odo,

If at some point in the past I have left you with the impression that I am an environmentalist, I apologize for the confusion. I am an economist who applies his training to environmental issues. I am also a utility maximizing consumer who likes to periodically ride really fast on the water.

As for the Tilapia--I like it. But Salmon and Tuna are yummy too.

[Dano]

Yeah sure, how long before that $5 becomes 7.50 then 9.75, then 11.50? What then? Huh? Soon enough he'll go back to surfing The Internets and napping while driving!

Best,

D

[odograph]

"If at some point in the past I have left you with the impression that I am an environmentalist, I apologize for the confusion."

Should that be in the page banner?

[odograph]

And on goin' fast ... I think this is more of a worthwhile goal for the human species.

[Tim Haab]

Odo:

"Should that be in the page banner?"

IT IS! "Economists on Environmental and Natural Resources"

[Dave]

$5 round trip?! That's a steal. Surely, as more people take advantage of this service, the price will rise, thus cutting into your friend's savings. Though the savings will still be substantial. Cool story.

[odograph]

I think people reading that expect ... what would the economic way to say it ... a different discount rate?

If you can put Jet Skis out there, either you are on a different planet than I am on, or you have a very different discount rate in mind.

[Adam]

Yeah, it's true that saving gas is great and all, but what I really want to know is who the heck gets six weeks vacation?

[odograph]

Tim, I'll put this as a placeholder, because I can't help but think it is related to our conflict at some level:

One major conviction drives the new economics. Economists used to believe that it was unnecessary to measure utility except in this way: the price that a person was willing to pay for something established its utility, and so there was no need to dig any deeper, to examine what was driving the psyche of the economic actor. But the behavioral revolution in economics challenges this assumption. It is based on the idea that we must look into that black box called the human mind to find out whether the things that we say we want really do give us pleasure. Utility, after the revolution, is no longer abstract. It is lived, experienced; it is existential. And fortunately, or so these books argue, the field of psychology has uncovered timely and fascinating truths about the ways our minds work, and these insights may breathe new life into the old idea of utility. Hedonic psychology, happiness research, behavioral economics, economic psychology, the study of well-being, judgment and decision-making--call it what you want. Suddenly everything we thought we knew about economics begins to look different.

link

[Tejvan Pettinger]

Let's hope the oil prices keep rising, and local governments start to improve public transport

[Krispijn Beek]

A Dutch company (Tendris) presented a speedboat on solarenergy last year at the millionaires fair in Amsterdam. Will cost you a bit (EURO 500.000 if I remember correctly) but might be solve the discussion between Tim and Odo: going freaking fast, while being environmental friendlier.

[odograph]

I think these guys get the bragging rights.

... they kite surf off the coast here ... talk about freakin' fast ... heading straight out half a mile too