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Old 06-13-2006, 06:17 PM   #34
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Join Date: Jun 2006
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Several factors favor this. When fuel becomes a major expense, people will aim to figure out how to economize without it affecting their lifestyles. The thing is, when fuel becomes a major expense wrt their income, then there are other factors automatically at play.

Since fuel is used in all of the economy, higher crude prices inflate all other costs. Higher inflation means that lenders have to raise interest rates to have the same quality investment they had before.

When there are higher interest rates, people have higher incomes and therefore less discretionary income. Thus the fuel (and everything else) looms larger in their budget.

Such people will avoid buying a new car anyway - why spend $16,000 on a new yaris (or more on a prius) when an old car for $3000 might do the same thing? So what will happen is that the older cars will get channeled into the hands of those who care a lot about fuel economy. This will also help when there is a price premium on the most fuel efficient cars.

Amongst those people will be a decent contingent of technically minded people who know how to use google. They will find this site (and others like it). They will want to perform the modifications on their own cars and be able to test things.

In fact, I can actually see it becoming sort of an "in" thing to do among the boy racer crowd. For the first car, perform go-fast mods. For the daily driver, perform go-cheap mods. And in this day and age, we have the tools (mpg meters, ECUs, widely available materials such as coroplast) to fix the problems. We also have the means (google and gassavers.org) to widely disseminate the know-how used in modding a car for fuel economy.

One thing that might rise out of this is a focus on top speed rather than fuel economy. You can't compete easily with raw acceleration in a gas saving car; but a top speed competition would make more sense. But that is more speculative than the other stuff, as you still need some power for that.

Of course, this all is all based on high and rising oil prices. Remove that, you remove the stimulus.
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