According to an article in Crains New York Business NYC is less vulnerable to increases in oil prices.
New Yorkers save gas money by taking the city's subways and buses, while local utilities avoid relying on crude oil to power homes.
With oil prices at $100 a barrel, New York City's economy is better positioned than other urban areas, primarily because of its extensive public transportation system.
The majority of New Yorkers other than taxi drivers don't pay for gas. 55% of the city's commuters took public transportation to work in 2006, according to the Census Bureau, while only 29% drove or carpooled.
The money saved by taking the city's subways and buses will translate into more spending at area restaurants, shops and entertainment venues.
Another fact Crains New York Business reported is that New York state's energy consumption per capita comes in as one of the lowest in the country. The state uses about 35 barrels of petroleum to produce $100,000 in gross domestic product each year, while states like Louisiana and Alaska use closer to 200 barrels to generate the same amount.
High oil prices will also help real estate values in NYC and in the metro areas located near commuter railroads such as Metro North and the Long Island Railroad.
Oil prices and Re-urbanization
- Higher oil helps cities with transit systems
- Life is livable without a car
- Spend on lifestyle vs gas and car
- Commutation at 2 hours by car is unsustainable
- Will urban areas be beneficiaries?
- $10 gas: what happens to suburbs?
related blog article: A Greener Greater New York
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