Gas prices

The news media are doing a very good job of telling us something we already know: that gasoline prices are high and continuing to rise. (In fact, some news outlets are even saying that gas prices have reached record highs, which is not true if you correct for inflation.) But if you want to know why gas prices are so high, you probably won’t get a coherent explanation from traditional news sources. Fortunately, energy economist Lynne Kiesling has written one. The short answer is: (1) High global crude oil prices, (2) existing environmental regulations, and (3) new environmental regulations. Be sure to read the comments on Kiesling’s article — they point out that limited refining capacity is also a factor.