Energy Conservation
Consumption of natural resources, such as petroleum, can impose various external costs,
include macroeconomic impacts and national security risks from dependence on imported
petroleum, environmental damages, climate change impacts, and the loss of resources
available for future generations. Put another way, resource conservation can provide
various benefits to society. The external costs of petroleum consumption are estimated to
be 1-4¢ per vehicle-mile for an average automobile (NRC, 2001). These impacts tend to be
higher for short trips, due to cold starts, and under congested, urban travel conditions.
Estimated Benefits: Energy conservation benefits of a shift from driving to walking or
cycling are estimated to average 5¢ per urban peak mile, 4¢ per urban off-peak mile, and 3¢
per rural mile.