I believe a society can benefit from high gas prices, but only if it has access to alternatives. These alternatives must be developed through smart and effective policies that are driven by the federal government, since market forces alone cannot prepare societies in advance for high-energy prices. When gas reaches $15 or even $20 dollars per gallon, there will be winners and losers. Obviously, winners will include early adopters that have accepted the inevitable truth—that we increasingly make certain energy sources unavailable forever through indiscriminate or inefficient uses. Losers will include the poorest of developing countries, especially those countries that do not have a stable government where conflict and war constantly destroys precious infrastructure (or prevents infrastructure building in the first place). A new book explores a hypothetical world benefited from $20 dollar per gallon gas. From the New York Times:

It’s notoriously hard to predict gas prices. Who would have thought in 2006 that we’d be paying $4 a gallon in 2008? Or, as prices peaked last year, that we’d be filling up for $2.50 a gallon this summer?

That said, civil engineer and Forbes reporter Chris Steiner argues that prices will rise precipitously over the next few decades. (It would probably make as much sense to argue that electric cars will take over and gas prices will fall, but that’s another argument for another day.) In his book $20 Per Gallon Steiner talks about how super-expensive gas would change everything — from the cars we drive to the price of sushi (if you can still buy it at all); whether Wal-Mart stays in business, and how often the average family can afford Disney World (if it still exists).

On balance, Steiner argues that dramatically high gas prices would actually be good for society. He predicts what would happen if gas prices rise drastically, and explains why he thinks that could actually be good for society. (Related: see this quorum on suburbs.) We asked him to give us his predictions for what our lives might look like with gas at $8 and $18 per gallon, respectively.

An interesting interview with Chris Steiner, the author of $20 Per Gallon

—
Photo source for attribution. The author or licensor of this image does not endorse my work or me and their image is protected under an attribution license.

:: :: :: :: :: :: :: :: :: :: ::