With monthly gasoline bills exceeding car payments in some areas of the country, Americans have started to substitute tiny electric cars -- including golf carts and smaller electric vehicles -- for their local transportation needs, The Wall Street Journal (subscription required) reported Thursday.
People are using them for local errands, to visit friends, even for trips to work if the destination is short, The Journal reported. And the habit may turn into a trend if cart use in challenging regions is any indicator: people in the nation of Texas are using them, as well!
Sees robust cart sales
Economist Glen Langan told BloggingStocks Thursday he's not surprised. "The previous rises in gasoline prices this decade, one [Hurricane] Katrina-related, one refinery-related, were viewed by the public as temporary. Not this time," Langan said. "Americans are convinced that four buck [$4] gas is here to stay, and oil use patterns around the world suggest they're not deluded in that assumption. Golf cart and mini-cart sales should increase at double-digit rates through the end of this decade, and most likely, longer."
Langan said electric golf carts and mini-carts typically have a 25-40 mile range, and cost about 3 cents per mile to run, assuming a 20 cent per kilowatt hour electricity charge. A typical 20 miles-per-gallon car costs 20 cents per mile to run, (not including insurance and depreciation costs) with gasoline at $4 per gallon. The cost reduction, combined with the ease of re-charging -- the carts can be re-charged by a standard, 110-volt house electric outlet -- are destined to make carts and mini-carts "a permanent sight in many American neighborhoods in the high-oil-price era," in Langan's interpretation.
Economist David H. Wang has more than a business-related, macroeconomic-analysis interest in golf carts. As an avid golfer, he sometimes uses a cart when he plays.
"They are a money saver and an energy saver and look for more households to use carts, mini-carts, scooters, bicycles, and other energy saving devices as they seek to lower fuel expenses. I thought about driving my golf cart home after my last round of golf," Wang said. "But I don't think the golf course I belong to would have appreciated that too much."
Energy Analysis: You go, cart! The above is just one change Americans are making to cope with sky-high gas prices. Look for other mini-electric-vehicles to be introduced in the year ahead. And if a trend emerges, it could reduce U.S. gas consumption by a considerable amount.
Closing Bell: Dubai sends jitters throughout the market (S, BBY)
Heinz looking good after the second quarter?
Why isn't Bank of America updating its shareholders on CEO situation?
Reader Comments (Page 1 of 1)
7-31-2008 @ 5:25PM
william lindblad said...
This has both plus and minus sides. First, they are not street legal and therefore, a driver license is not required. Since that is a fact, you can't insure them either. Some municipalities have and are taking steps to remedy those issues but they are communities that had the golf cart in mind when they were building. They have roads specific to cart use are all in the deep South. The carts run on batteries and batteries are very prone to current loss in cold weather, i.e - they would be of little use in Maine. However, while they are a partial solution they don't have a/c and the rest of the goodies, not to mention much safety equipment. They can get 50+ with the addition of solar panels. They are a simple step in the right direction.
Another possible is a small car being made (yes, you CAN buy it) in France. It is cheap, green as it gets and runs on compressed air. Go's 50 miles on a charge and comes with it's own air compressor. Drawback - takes 4-5 hours to fill er up. Compressed air does not care if it is cold, however better have a good coat.