Skyrocketing gas prices have been at the forefront of a lot of people’s minds lately (at least the media would have us believe that). With prices being more than double what they were a few years ago, Americans are finally starting to reduce the amount that they use their cars.

The modest decrease in automobile use (1.8% fewer miles driven in April 2008 than April 2007) is good news, but more extensive changes will likely be in store if gas prices continue their meteoric rise. What is the magic number in terms of price that is going to lead to fundamental changes in how we live in North America? By fundamental change I mean hard choices that have a profound impact on how we live, such as moving from the suburbs to the city to reduce commuting expenses.

I was listening to the great Mitch Albom on Detroit’s WJR-AM the other day, and he posed that very question to his listeners. It is a very intriguing question. Mr. Albom contends that in North America our addiction and reliance on our gas-powered automobiles is so great that we would sacrifice almost any other expense before undergoing a radical and fundamental change in our lifestyle. Mr. Albom believes that $10 / gallon (about $2.67 / litre) is the magic number that will introduce a wave of change. This is not an unrealistic scenario - keep in mind that European gas prices are already near or greater than $10 / gallon and many parts of Canada are well on their way to $6 / gallon.

Is Mitch way off with his thinking, or do you think his guess sounds reasonable? Send me your comments about what your own ‘tipping point’ is with regard to changes induced by gas prices.

Photo courtesy of Therese Flanagan
www.thereseflanagan.com