US Clean Cities program displaces 0.2% of US gasoline demand

The US Clean Cities program has displaced 0.214% of US road fuel demand in 2008, according to figures relased by the organisation which show that a total of 384m gal were reduced from a total of all road fuel of 174 930 m gal in 2006 (the last year for which figures are available) at a cost of $132m. That’s $0.35/gal reduction.

Hardly sustainable, but the Clean Cities Program has the equivalent of

a national network of 48 full-time technical sales professionals working to reduce U.S. dependence on oil.equivalent to 48 full time sales professionals across the US

This post is not about disparaging the work that this dedicated bunch of people do, but to point out that it is compoletely inadquate to the task in hand. How many people are there selling oil in the US? How much funding do they get? What i wonder is the total number of people working to reduce oil dependency in the US?

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3 Responses to US Clean Cities program displaces 0.2% of US gasoline demand

  1. PRADEEP 20 October, 2008 at 3:07 pm #

    Are you assuming that the demand-price curve for gasoline is elastic? I think that consumers will be willing to pay inelastically till a certain price above which they will begin to cut down their consumption. That said, 35 c on the gallon seems to be pretty promising to me. This is way better than the summer gas price-relief proposals that were floated in the primaries.

  2. Simon Robinson 21 October, 2008 at 10:27 am #

    Hi Pradeep,

    I wasn’t trying to be that clever. Though there does seem to be almost as much price elasticity in petroleum as tobacco, alcohol (and possibly crack, but I’ve not really tried to watch that market). If price elasticity means you can ramp up the price and demand stays constant.

    I was just dividing the total amount of funding this year by the reduction in use.

    My economics education has been restricted to six hours in my first undergraduate year. It was much more interesting than statistics.

  3. PRADEEP 22 October, 2008 at 7:08 am #

    …but I’ve not really tried to watch that market
    That’s funny. Looks like we really need gasoholics anonymous :-) ?

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