> Gasoline in the U.S. is very cheap - not only by world standards,
but
> by our own historical standards. It took 12 minutes of work at the
> average hourly wage to buy a gallon in 1949; that fell to 6 minutes
> in 1972. After two oil shocks, it rose back to 11 in 1980 - and
> started falling again, to an all-time low (at least since EIA figs
> begin in 1949) of 5 minutes in 1998. As of February - with gas at
> $1.54/gal, it was up to 7 minutes. Getting back to the 1949 standard
> would bring gas up to $2.49/gal. It'd probably take twice that to
> meet the Kyoto standard, no?
>
> Doug
============
Not if prices don't cut demand between 1/2--3/4 of current usage and
keep it there until every drop of oil is sucked from the earth. Some
think even that may not be enough when modest growth rates are
factored in. Demand/Price/Innovation inelasticities could really bite
us.
Ian