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

Large blank mall building with only two cars in large parking lot.

Pennsylvania Mall Conversion Bill Passes House

If passed, the bill would promote the adaptive reuse of defunct commercial buildings.

April 18, 2024 - Central Penn Business Journal

Rendering of wildlife crossing over 101 freeway in Los Angeles County.

World's Largest Wildlife Overpass In the Works in Los Angeles County

Caltrans will soon close half of the 101 Freeway in order to continue construction of the Wallis Annenberg Wildlife Crossing near Agoura Hills in Los Angeles County.

April 15, 2024 - LAist

Workers putting down asphalt on road.

U.S. Supreme Court: California's Impact Fees May Violate Takings Clause

A California property owner took El Dorado County to state court after paying a traffic impact fee he felt was exorbitant. He lost in trial court, appellate court, and the California Supreme Court denied review. Then the U.S. Supreme Court acted.

April 18, 2024 - Los Angeles Times

Pedestrians crossing a busy crosswalk on New York City street with tall buildings in background

New York’s Deadliest Neighborhoods for Pedestrians

Pedestrian deaths rose last year, but remain below pre-2020 levels.

19 minutes ago - PIX 11

View of downtown Seattle with Space Needle and mountains in background

Eviction Looms for Low-Income Tenants as Rent Debt Rises

Nonprofit housing operators across the country face almost $10 billion in rent debt.

April 23 - The Seattle Times

Rendering of Brightline West train passing through Southern California desert

Brightline West Breaks Ground

The high-speed rail line will link Las Vegas and the Los Angeles area.

April 23 - KTLA

News from HUD User

HUD's Office of Policy Development and Research

Call for Speakers

Mpact Transit + Community

New Updates on PD&R Edge

HUD's Office of Policy Development and Research

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.