Simple model of energy: As the price of energy source A rises, source B becomes cheaper, relatively. As the price of A rises, the likeihood of switching to B rises...
Backers of alternative fuels see a silver lining in rising pump prices.
With gas and diesel prices climbing past $3 and $4 a gallon, respectively, cities, companies and environmentalists are once again talking about compressed natural gas, or CNG, as a smart alternative.
...like that.
Unless there is a big up front (fixed) cost to transitioning...
Although powering vehicles with natural gas has advantages - an average price of $1.70 per gasoline gallon equivalent and 60 percent lower carbon emissions - making the switch to CNG is expensive because there is no fueling infrastructure comparable to gas stations.
...like that.
With a big up front infrastructure cost, the lowest hanging fruit for the transition will be fleet vehicles that refuel centrally...
The city of Columbus is among those helping to change that. The city is building a CNG fueling station at its fuel center on Groves Road and hopes to open it to the public by October. It's part of a plan to add 24 CNG vehicles to the city's fleet this year, with a promise for more vehicles and three more stations over the next seven years.
...like that.
But if the fixed cost can be overcome (sunk) then the alternative fuel source may become economically viable...
The new vehicles are only a fraction of the more than 3,000 in the city's fleet, but they are replacing the worst fuel hogs: trash trucks, dump trucks and street sweepers. Kelly Reagan, the city's fleet administrator, said the city's trash trucks, for example, average about 2 miles per gallon and burn more than 4,000 gallons of diesel fuel each year.
City officials estimate that using 24 CNG vehicles can reduce harmful carbon emissions that contribute to air pollution. The city also will save money on fuel, about $60,000 to $90,000 a year. But price is not the prime reason for switching, Reagan said.
...like that.
But defending the expense of the upfront cost from tax revenues may require a plea to emotions in addition to cost savings...
"First and foremost, this plan didn't begin with fuel prices; it began because it's the right thing to do," he said. "But, oh, by the way, we're going to save a ton on fuel."
...like that.
