# Posts Tagged Phillip Hammond

### Will driving at 80 mph help the economy? Statistics say… probably not

Last week, the Transport Secretary Phillip Hammond announced plans to raise the speed limits on motorways from 70 mph to 80 mph. This, he claimed, would:

“generate economic benefits of hundreds of millions of pounds through shorter journey times.”

Never mind the debates about safety and the environment, let’s look at this one argument. So, does a shorter journey equal a more economic journey? The problem is that cars need more fuel to travel faster, and so the faster you go, the worse your fuel efficiency is. Statistics that go right up to 80 mph are hard to find for some reason – the big US government study for example only went up to 75 mph – but according to the calculator at MPG for speed (better sources always appreciated), driving at 80 mph uses about 15% more fuel per mile than driving at 70 mph.

So, lets do some maths! For the sake of simplicity, we’ll assume every single journey on the motorways is work-related. The actual figures will be lower, especially on weekends and holidays.

At 70 mph, it takes 51 seconds to drive 1 mile. In this time, a car with a claimed “highway” fuel efficiency of 40 miles per gallon (roughly as efficient as a modern hatchback like a Ford Fiesta) will use about 0.11 litres of petrol. At the current average pump price, that’s 15 pence of petrol.

At 80 mph, you cover that same mile in 45 seconds, saving you 6 seconds. On the other hand, your car is now 15% less efficient. According to the calculator, your 40 MPG car is now doing just 28.8 MPG, using around 0.13 litres of petrol to cover that mile, so the fuel to travel that distance cost you about 18 pence.

Spending 3 pence to save 6 seconds is equivalent to spending £18 to save 1 hour. The average median wage in the UK is far lower than £18 an hour (currently, it’s £12.50 per hour for full-time workers (PDF))* – in other words, if you drove at the speed limit to get to/from work, the money you’d be spending on petrol would mean most people would actually lose out (people who car-share would be in a better position, but few people car-share to work).

All the extra pay taken home by workers would simply end up going straight to the petrol companies – and when the government is trying to increase consumer spending, that’s the last thing the economy needs.

(Oops, forgot to mention that this post bears a debt of inspiration to this xkcd comic.)

* Thanks to Lukeablancas in the comments for pointing out that I’ve gone for the median wage. The median wage is good for working out what this means for the average person, since it’s unaffected by extremes, but if we’re looking at the country as a whole, the mean wage might be better – this will take high-earners like company bosses into account, as well as people who work in short but intense shifts, like some freelancers. In 2010, the mean wage for men was £16.00 per hour and for women it was £12.92 per hour (annoyingly the government hasn’t released the combined figures for men and women, but assuming there are roughly equal numbers of both in work the average wage overall is £14.46 per hour). Either way, on average people will end up losing out.