Monday, June 30, 2008

Why expensive energy can be good

High energy prices are often seen as a stimulus for other more environmentally friendly, but more expensive, energy sources. Aside from that, high energy prices also force the entire economy to be much more efficient. This article in the NYT discusses how Walmart / Sams Club is switching to a different type of milk jug that makes shipping and production easier, and translates to significant cost savings, and 60-70% decreased water use at the dairys. Packing more into a truck means less trips, decreased water use is certainly good in times of uncertain supply. All these positve changes just becuase high energy prices were making buisness executives at Walmart (not really a stalwart of environmental progress) look more carefully at their practices.

Bring on $5 a gallon- it might hurt at the pump, but we'll be saving money in other places, and we're getting *closer* to paying the actual cost of the energy we use.

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