Are Hybrids Having An Effect On Consumers’ Gasoline Expenditures?

According to a new report issued by the Natural Resources Defense Council, residents of three states - Mississippi, South Carolina, and Georgia - spend more than 7 percent of their annual income on gasoline. Drivers in Louisiana, Kentucky, New Mexico, Indiana, Arkansas, Oklahoma, and Iowa spend between 6% and 7% of their income on gasoline and and are most vulnerable to rising gasoline prices from spikes in the price of oil.

The report also identifies the ten states that are doing the most to reduce their consumption of oil. California heads the list, followed by New York, Connecticut, Washington, Pennsylvania, New Jersey, Rhode Island, New Mexico, Colorado and Maryland. The ten states that are doing the least to reduce oil dependence are Delaware, Missouri, Arkansas, West Virginia, Montana, Wyoming, South Dakota, Alabama, Mississippi and Alaska.

According to the NRDC, the most effective strategies to reduce oil dependence include using cleaner, more efficient vehicles and cleaner fuels. Research and development, careful growth planning and improved public transportation can also help reduce dependence upon oil.

Can these strategies make a difference? A new report by the Travelers Insurance company shows that California, Florida, New York, Texas and Illinois have more hybrid vehicles registered than any other states. Based on the NRDC data on gasoline expenditures, drivers in only New York and Connecticut are ranked among those who spend the least on gasoline, while Pennsylvania and Washington drivers spend between 4% and 5% of their incomes on gasoline, and drivers in California spend between 5% and 6% of their income on gasoline.

The combined reports would seem to indicate the states that are doing the most to reduce their dependence on oil may not be achieving those gains by licensing large numbers of hybrid vehicles. Californians, who licensed more hybrid vehicles than drivers in any other state in 2007 are still spending more than 5% of their income on gasoline yearly. Similarly situated are Texas drivers, who ranked fourth in hybrid registrations and still spend more than 5% of their annual income on gasoline. In addition, Texas is in the heart of the US oil refining industry. The cost of transportation should be minimal in Texas, giving those drivers a slight advantage when it comes to the cost of gasoline at the pump.

Indisputably, vehicles contribute a lot to poor air quality, and reducing emissions will improve the breathability of our air and reduce the consumption of oil. However, hybrid technology may only be a stepping stone on the path to reducing vehicle emissions. Zero-emission vehicles - such as those that run on hydrogen or electricity - may ultimately contribute much more to the reduction of oil consumption than hybrids can, and raise the question of how long hybrid technology will serve as an intermediate technology on the way to gasoline-free transportation.