A recent Congressional Research Service report titled “Rising Gasoline Prices 2012” states that Congress has “limited short term options … to address gasoline prices.”
The report identifies six short-run policy options – a Strategic Petroleum Reserve release, a gasoline tax holiday, relaxed fuel specifications, limits on refined gasoline exports, limits on commodities speculation, and diplomatic measures – and concludes that it is unclear “what the price impact of these short term options would be” and that they would involve policy tradeoffs which may include “national security, fiscal, and health priorities.”
The report briefly addresses longer-term policy options, i.e. “measures that encourage efficiency, oil production, and alternative fuels. Pursuit of long-term measures in the absence of short-term measures, to the degree short-term measures may (or may not) be effective, may make it more likely that consumers will suffer from high gasoline prices for the time being. However, higher prices may also provide additional market based-incentive for investments by consumers and firms in efficiency, energy production, and alternative fuels.”
What do you make of the report’s findings? Is it true that the U.S.’s short-term policy options are limited? Do you expect higher prices to “provide additional market based-incentive” to develop cost-effective gasoline alternatives?
While I agree that there are “limited short term options available to policy makers to address gasoline price increases”, I find it incredible that the options suggested by the Congressional Research Service report neglected to include telework.
Both the public and private sectors are starting to embrace telework, albeit for different reasons, but one thing is for sure – teleworking reduces miles driven which reduces gasoline consumption which reduces what is spent on gasoline. This is a very simple concept. Don’t drive to work one day and your consumption is reduced by 20%; two days 40%, etc. One day of teleworking equates to getting 20% more miles per tank which is like taking the $4.00 gallon and making it a $3.20 gallon. Two days will be like reducing the cost to $2.40 per gallon. Telework can help insure continued employment to many who could not afford to pay rising gas prices to get to work.
I understand that there are other factors that can and should be dealt with such as limiting speculation and diplomatic solutions to what is going on in the Mid East, but NOTHING would be quicker, cheaper, and easier to implement than telework. And, if Congress would pass some incentives to encourage telework in the private sector – there are none at all now, although they have been proposed, and pass the Telecommuter Tax Fairness Act which prohibits states from imposing taxes on interstate telecommuters, even more organizations would be encouraged to implement telework programs.
And where the CRS states that “Potential costs may include national security, fiscal, and public health priorities”, telework would have no negative effect on national security – in fact it has been shown to be a key component in disaster avoidance and business continuity (Continuity of Operations (COOP) in the public sector) programs by decentralizing the workforce. The fiscal impact will be very little and once implemented telework will more than pay for itself to employers through increased employee productivity, reduced costs related to absenteeism, improved employee retention, reduced real estate and related overhead costs, and higher employee morale. As far as our health, fewer miles driven mean fewer emissions and thus less water and air pollution. Also, let’s not forget the reduced costs to our governments from both reduced wear and tear to our transportation infrastructure, and lessening the need for new and expanded roads and highways.
The advancement of technology has been a prime driver of telework. With the development of video collaborative technologies, for example, a considerable amount of long distance (and local) travel can be eliminated. How many of us have flown cross-country (or driven across town) to attend a meeting that could have happened just as well from a local office or even from home, for that matter?
To sum up, let’s not get hung up on the words telework or telecommuting. Most of us are now mobile workers with smart phones, iPads, tablet computers, and laptops. Even most nay-sayers on this topic work from somewhere other than their primary place of employment. Telework will benefit us all in both the short and long term.