Rep. Pocan,

I am writing to recommend that 10% of monies raised by a potential tax
on oil companies be set aside for bicycle infrastructure projects.

The excessively high oil profits that justify such a tax would not be
possible without the highly inelastic market for gasoline demand -
which I believe is a result of insufficient money being spent by the
State on alternative modes of transportation.

Inelastic markets are the result of limited consumer choice. In this
case, I believe it is clear most people in Wisconsin feel the only way
to fulfill their transportation needs is to rely exclusively on the
automobile.  I have lived my 20 years as an adult without relying on
the automobile as my primary source of transportation.  Therefore,
given first-hand knowledge that usable alternatives exist, I am left
with the conclusion that they are not easily usable by the majority of
Wisconsin's citizens.  That is why we need to dedicate 10% of oil tax
revenues to bicycling.

Bicycling is the most empowering motor-vehicle alternative:  It is
usually faster than mass transit, and provides a level of
transportation independence and flexibility that is superior to that of
any other mv-alternative.  I believe a very large reduction in the
magnitude of gasoline price spikes can be achieved simply by doubling
the current number of people comfortable with using the bicycle for
transportation purposes.  The 2000 price spikes were caused by a 5%
shortfall in supply - which means if only 5% of adults had the option
to switch from automobile to bicycle transportation during that summer
shortage, there would have been no spikes - demand and supply would be
balanced.

Contrary to what I am hearing about creating alternative agro-based
fuels, I do not believe that will solve the problem.  Insulating
citizens from price shocks by increasing the gasoline supply will drive
up consumption - people will move further from where they work, buy
bigger cars, etc.  And when it comes to the next shortage, inelasticity
will be higher, and a smaller shortage will create larger price shocks.
What is worse, tying agro-products into the fuel production process
will only widen the scope of the economy vulnerable to gas shortages. 
Agro-fuel processes have already negatively impacted the cattle feed
supply chain.

Please, during the current budget process, insist on earmarking 10% of
revenues from the oil tax for bicycling infrastructure.  I believe the
economic well being of the State depends on it, given the likely
volatility in gasoline supply over the next few decades.

Matt Logan
1822 Jenifer St.
Madison WI, 53704.


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