Living Well In The Era Of High Gas Prices

Want to learn how Americans can maintain a high standard of living in an era of sky-high gas prices? Just look at Europeans, who've been going it for decades, argues economist Paul Krugman.

2 minute read

May 20, 2008, 6:00 AM PDT

By Christian Madera @http://www.twitter.com/cpmadera


"If Europe's example is any guide, here are the two secrets of coping with expensive oil: own fuel-efficient cars, and don't drive them too much.

Notice that I said that cars should be fuel-efficient - not that people should do without cars altogether. In Germany, as in the United States, the vast majority of families own cars (although German households are less likely than their U.S. counterparts to be multiple-car owners)."

"Can we also drive less? Yes - but getting there will be a lot harder.

There have been many news stories in recent weeks about Americans who are changing their behavior in response to expensive gasoline - they're trying to shop locally, they're canceling vacations that involve a lot of driving, and they're switching to public transit.

But none of it amounts to much. For example, some major public transit systems are excited about ridership gains of 5 or 10 percent. But fewer than 5 percent of Americans take public transit to work, so this surge of riders takes only a relative handful of drivers off the road.

Any serious reduction in American driving will require more than this - it will mean changing how and where many of us live.

To see what I'm talking about, consider where I am at the moment: in a pleasant, middle-class neighborhood consisting mainly of four- or five-story apartment buildings, with easy access to public transit and plenty of local shopping.

It's the kind of neighborhood in which people don't have to drive a lot, but it's also a kind of neighborhood that barely exists in America, even in big metropolitan areas. Greater Atlanta has roughly the same population as Greater Berlin - but Berlin is a city of trains, buses and bikes, while Atlanta is a city of cars, cars and cars."

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