Monday, June 23, 2008

The Upside to Higher Oil Prices

Among them is lower obesity rates.

Here are the rest.
1. The mass transit boom

2. Lower obesity rates

What’s happening: Rising gas prices and smaller belt sizes go together, according to Charles Courtemanche of Washington University in St. Louis. His research found that, for every dollar increase in the average real price of gas, overweight and obesity levels in the United States would decline by 16 percent after seven years. His study also attributes the outward expansion of American waistlines between 1979 and 2004 in part to falling prices. Similar research published in the European Journal of Public Health found that European countries with higher gasoline prices tend to have lower rates of obesity.

Why it’s happening: One word: exercise. Bike shops across the United States are reporting record sales, and Britain is even promoting a national “Bike Week” to encourage commuters to ride, not drive, to the office. Not only is two-wheeling a cheaper way to travel, it’s also healthier. Courtemanche’s results show that “the average person walks or bicycles an average of 0.5 times more per week if the price of gas rises by $1.” Another factor he identifies is that cost-conscious Americans are choosing to eat at restaurants less frequently. Indeed, a virtuous cycle could be at work: A study published in The Engineering Economist found that Americans today use nearly a billion additional gallons of gasoline each year, compared with 1960, solely because they weigh more.

3. Fewer accidents

4. Shorter commutes

5. The biofuels craze

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