This Weekend, Don't Forget: Cheap Gas Prices Aren't Always a Good Thing

There are a lot of people in this country that consider cheap gas to be a form of benevolence. Here are some reasons why they should curb their enthusiasm.

1 minute read

November 20, 2015, 2:00 PM PST

By James Brasuell @CasualBrasuell


"At least on the surface, the big declines in gas prices we’ve seen over the past year seem like an unalloyed good. We save money at the pump, and we have more to spend on other things," begins a post by Joe Cortright that soon takes a turn. "But the cheap gas has serious hidden costs—more pollution, more energy consumption, more crashes and greater traffic congestion."

Cortright notes that we tend to focus on macreconomic considerations while neglecting the microeconomic. So while cheaper gas can have the effect of a tax cut, it can also quickly increase VMT, and with it, pollution and congestion.

Another, larger lesson emerges from Cortright's interpretation: "gas price fluctuations represent a terrific natural experiment in the efficacy of using pricing to manage traffic and its negative effects."

Eric Jaffe followed Cortright's work by expanding on one of the points in microeconomic column: car crashes increase as gas prices decrease.

Tuesday, November 17, 2015 in City Observatory

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Aerial view of town of Wailuku in Maui, Hawaii with mountains in background against cloudy sunset sky.

Maui's Vacation Rental Debate Turns Ugly

Verbal attacks, misinformation campaigns and fistfights plague a high-stakes debate to convert thousands of vacation rentals into long-term housing.

July 1, 2025 - Honolulu Civil Beat

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

July 9, 2025 - Diana Ionescu

Map of Haussmann's redesign of Paris in the 1850s through 1870s under Napoleon III.

In Urban Planning, AI Prompting Could be the New Design Thinking

Creativity has long been key to great urban design. What if we see AI as our new creative partner?

June 30, 2025 - Tom Sanchez

View of dense apartment buildings on Seattle waterfront with high-rise buildings in background.

King County Supportive Housing Program Offers Hope for Unhoused Residents

The county is taking a ‘Housing First’ approach that prioritizes getting people into housing, then offering wraparound supportive services.

July 11 - Real Change

Aerial view of suburban housing near Las Vegas, Nevada.

Researchers Use AI to Get Clearer Picture of US Housing

Analysts are using artificial intelligence to supercharge their research by allowing them to comb through data faster. Though these AI tools can be error prone, they save time and housing researchers are optimistic about the future.

July 11 - Shelterforce Magazine

Green bike share bikes parked in a row on a commercial street with outdoor dining and greenery.

Making Shared Micromobility More Inclusive

Cities and shared mobility system operators can do more to include people with disabilities in planning and operations, per a new report.

July 11 - Cities Today