[QUOTE=Barbarian]
You’re being a little disingenuous here Sam. You have a short commute to a city in the middle of the prairies, and you don’t deal with the daily grind of commuting that people in larger cities have to face. You also neglected to price out the cost of all the extra driving you do.. to daycare, for groceries, to the in-laws. My wife’s commute is just as long as yours, and the car is just as efficient, but we still go through 5/8s of a tank every week, which is a lot more than $15.
Look at Toronto (horrid as it may be), where living in Milton, a mere 56 km from the city, is considered a short commute. Yeah it’ll take you an hour to drive there.. and you’re burning a hell of a lot more gas.
Here in Montreal, there are people buying places out in Vaudreuil-Dorion, which is at least a 45 minute drive.. assuming the bridge isn’t blocked.
Those are the options 'Europeans and American inner-city dwellers’are dissing.
[/QUOTE]
A 45 minute commute or worse is the norm for most people taking mass transit.
And you’re right, my case is a little better than most. But that hardly changes the point. My company’s office may be moving, in fact, and one of the possible locations will turn my commute into about 30km each way, and close to an hour through traffic. So then my gas bill will jump to $160 per month. That kind of money is not a deal-breaker for most people in the suburbs. If they own a vehicle they’re already spending close to $1000/mo on transportation.
I’ll tell you what I’m going to do: If the company moves, I’ll sell my vehicle and buy something like an Escape hybrid, or hopefully a Chevy Volt or another plug-in hybrid. And then I’ll be fine, because I can run on electric power alone for the whole commute, at a fraction of the cost of gasoline.
Those are the kinds of choices people will make. They won’t sell their homes and move into apartments in the cities. They won’t start putting their families on buses and trains.
A more likely result than suburban residents moving to the city is that they will force the city to come to them. The adaptations society makes could just as easily be to have companies relocate into the suburbs, expend more effort developing telecommuting hardware and practices, and work harder to provide fuel efficient vehicles that the market will strongly demand.
There will be changes in both directions on the margins. The guy who was evaluating two jobs might decide on the job closer to home. Some city dwellers who were contemplating moving into the suburbs will choose not to. Some suburbanites who were contemplating moving into the city will choose to do so.
These changes will come gradually, and you’ll hardly notice it until the change is here. Think of how the big-box retailers destroyed the shopping malls and large department stores. They moved closer to the suburbanites than the malls, and offered them specialized products. Stores like Home Depot bring building materials right into the suburbs so people do not have to drive long distances to acquire it. Home Depot also enables the development of small, local contractors who work within their communities. These are all market adaptations to suburban living. There will be more.
If the price of oil skyrockets, we can adapt. With sufficient incentive, people could reduce their gasoline usage rapidly even with their current vehicles. They’ll learn to drive them more economically and probably shave 20% off their fuel consumption right off the bat. They’ll keep their tires properly inflated, combine shopping trips more often, etc. There will only be major disruption if gasoline simply can’t meet demand and there are actual shortages and rationing. But if that happens, you will see an incredibly rapid turnover of the personal auto fleet into electrics and smaller, highly efficient vehicles. They’ll turn down their thermostats and wear sweaters more. They’ll stop going out much for entertainment and stay home and play XBox and watch their HDTV’s. Life won’t suck.
And people will be buying up solar panels, putting wind generators in their back yards, and opposition to nuclear will melt away and we’ll go on a nuclear frenzy.
In 50 years, the economy will have transitioned to a more sustainable energy infrastructure, and everyone will be better off for it. And if you just sit back and let the market work and respond to high prices, we’ll find the optimal path through the transition.