Could gas prices push governments to support more renewables?

Survey finds that fuel-cost concern could drive policy changes, electric vehiclesThe Consumer Federation of America released the results of a survey Wednesday that reveals Americans are more concerned than ever before with the cost of gasoline and the United States’ dependence on foreign oil, which could increase electric vehicle production and drive solar and other renewable energy development.

The survey indicates that fears about rising gas prices and foreign oil are more likely than ever to drive policy changes regarding where the U.S. gets its fuel and how much it uses, especially in its cars, said Jack Gillis, director of public affairs for the federation.

Of those middle class Americans, with household incomes ranging between $25,000 and $75,000 per year, 84 percent said they were greatly concerned about the cost of gas.

Gillis said that gasoline is the highest it has ever been in real or adjusted dollars at this time of year and that, at an average of $2,800 a year, the average American household now spends more on fuel than on car loan repayment for the first time since loans became common.

Gillis said that because, for the first time, middle class Americans are especially concerned about gasoline prices and fuel efficiency, it’s likely to light a fire under congress to make swift changes, especially when it comes to fuel efficiency standards for automobiles.

“It’s usually just the low-income families that express concern about fuel prices,” Gillis said in a press call. “This time, it’s the middle class. And politicians are listening to the middle class right now.”

The federation’s survey found that 70 percent of middle class respondents supported the government increasing the national fuel economy standard to 60 miles per gallon by 2025.

“That 60-miles-per-gallon number is achievable,” federation CEO Steve Brobeck said.

It’s in the range that is currently up for discussion, though it is on the higher end of the spectrum, Gillis said.

“Automakers seem to be competing vigorously in this space right now,” Brobeck said. “Clearly, electric vehicles have arrived at least at the level of the first generation of deployment.”

He noted that electric-vehicle and plug-in, hybrid-vehicle production is likely to increase at a rapid pace now that it’s becoming more widely accepted.

“Look at the Toyota Prius,” he said. “When it first came out, it was an expensive statement car. Now it’s the number one cost-for-efficiency car on the road.”

Solar industry gurus have speculated that electric vehicle batteries could be used to offset peak energy demand by storing solar power produced during the day and feeding it back to the grid in the evening hours.

Brobeck said that the survey did not question respondents about energy generation, but that the general level of anxiety around fuel sources within one of the most politically valuable demographics could have wide-reaching impacts across the board when it comes to policy-makers.

Image courtesy of Thetruthaboutcars.com.