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Raymond Richman - Jesse Richman - Howard Richman Richmans' Trade and Taxes Blog Switching fleets to CNG is a no-brainer When I was in Boston for my youngest daughter's college graduation, I noticed that all of the within-airport buses were running on CNG (Compressed Natural Gas). They looked the same as other buses, except that they did not give off diesel smoke. Since CNG burns cleaner, their engines will probably last longer without requiring oil changes. The switch of Boston Airport buses to CNG is part of a growing switch of fleets to CNG. Eventually, the increasing number of CNG filling stations will make it possible for households to switch to CNG. (Click here to see the GM pick-up truck that I plan to buy once a CNG filling station opens up in my area.) The main drawbacks of CNG are: (1) filling stations are not readily available everywhere, and (2) the fuel tanks take up more room on the vehicle. Neither of these drawbacks applies to public buses. In a January 18 blog entry on the Pike Research website, Anissa Dehamna (In D.C., Running on Natural Gas) suggests that the switch-over can save the public transportation companies money, even if they have to build their own filling stations:
As my father and I noted in our May 12, 2011, American Thinker commentary (How to Switch to CNG while Saving Taxpayer Money), prices of gasoline and CNG were approximately equal up until 2006, but, since then, gasoline prices have nearly doubled while CNG prices have been steady. With natural gas reserves growing rapidly and oil reserves relatively stagnant, this disparity will likely increase over the coming years. According to the principle of substitution, one of the basic principles of economics, after coffee prices increase, demand for tea increases. So, with oil prices increasing and CNG prices steady, we can expect a huge switch to CNG over the coming decade. There is no legitimate reason for public transportation providers to delay the switch. It's a no-brainer.
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