Feature Article...

Does It Pay To Go Green?
One Senator's experience says yes, even if it's not a pot o' gold at the end of the rainbow.

Can environmental good and good economics go hand-in-hand?

Senator Richard Green Lugar’s three years behind the wheel of a Toyota Prius gasoline-electric hybrid car say yes.

Senator Lugar standing next to his Toyota Prius.

From March 12, 2005 to March 12, 2008, Senator Lugar drove his Prius 24,203 miles, averaging 45.8 miles per gallon. If he had instead purchased an average conventional midsize car in 2005, he would have expected about 23.8 mpg according to EPA statistics.

By choosing to drive a Prius, he saved 488 gallons of gasoline. That comes to a savings of $1,337 in gasoline – almost as much as the total amount ($1,447) he spent on gasoline over those three years. 

As for the environment, saving 488 gallons of gasoline reduced carbon dioxide emissions by 4.8 tons. That much CO2 gas would fill approximately 19 hot air balloons. 

Hybrid vehicles like the Prius sell at a premium price to conventional vehicles. Senator Lugar estimates that he will recoup the higher cost of buying a hybrid in 4.91 years (if he had been eligible for the federal hybrid vehicle consumer tax credit, he would have recouped the extra cost in 1.32 years). This estimate was figured by comparing the price of his Prius against the list price of a 2005 Ford Taurus (had he chosen to replace his previous Taurus with the same model).

Senator Lugar’s Indiana tree farm has also been working the other side of the carbon footprint equation. His trees sequestered an estimated 400 tons of CO2 in 2007, which will be certified and registered on the Chicago Climate Exchange.

Senator Lugar hopes that someday he will be able to buy a car that is both a flex-fuel and plug-in hybrid. That way he will be able to use up to 85 percent ethanol fuel and run mostly on the electric charge for his 28-mile per day round trip commute to Capitol Hill.

According to a 3/11/08 Investor’s Business Daily report on a February 2008 TechnoMetrica survey, the average American estimates they spend $135 per month on gasoline. Over the last three years Senator Lugar has paid an average of $40.21 per month. His average price per gallon was $2.74, lower than the most recent purchase of $3.22 per gallon.

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The Prius mpg was calculated by totaling every individual gasoline receipt, the number of gallons purchased, and the miles driven since March 2005. Comparative fuel costs for an average 2005 car are projected based on the EPA’s 2007 Light-Duty Automotive Technology and Fuel Economy Trends report. Fueleconomy.gov provided the gallons to CO2 emissions ratio.