Wants are Sometimes a More Relevant Form of Demand

When it comes to market design for low income consumption potential, perceived needs are often a logical starting point. Certainly I've emphasized needs focused design for lower income groups over the years. But what about circumstance when consumer wants are the more relevant factor? 

It's a consideration which matters when resources are not only scarce but also include experiential characteristics. Economic time commitments are a great example. Not every individual is going to seek out the kinds of knowledge and skills from people that others might happen to deem most practical. 

However, the importance of consumer choice especially holds true for energy resource options. In particular, both consumer needs and wants will determine aggregate energy demand (not to mention supply) in coming decades. Consequently, both should be factored into market and community design, so that resource scarcities can be fully accounted for. Even though we are beginning the shift from fossil fuels to electrically generated transportation, the processes involved won't always go smoothly. No one really knows yet who will remain able to travel as frequently via electric vehicles, as was possible with gas powered vehicles. What's more, energy use patterns and their fluctuations will remain important for central bankers when it comes to inflation management and economic stability. How might potential energy consumption for low income groups contribute to greater economic stability via supply side innovation? 

Community design in the near future could address such concerns. In all of this, our routine transportation offers a straightforward example. The natural consumer preference for vehicular transportation as a special activity, could contribute to positive energy use outcomes. Most everyone, regardless of income level, prefers driving for fun (such as vacations and weekend trips) over the hassles of driving to and from work. Even though it's presently difficult to translate this reality into walkable communities for higher income levels, there's been a dearth of low income community design in recent decades. Hence the good news: these missing design elements make it easier to create new communities from scratch for lower income groups. In the process, we would be able to reduce needs based (work related) automotive transportation in favour of walkable communities. Yet low income groups could strive for energy based transportation options specifically designed for the wants of experiential travel.

At an aggregate level, community design for energy wants with reduced energy needs, leaves more room for all citizens to benefit from transportation, despite impending energy scarcities. Creating walkable communities could make it feasible to better manage overall energy demand. Walkable communities can also make it easier for low income groups to maintain more efficient control over their (already) scarce time. We are fortunate indeed that it is easy to discern what holds greater personal value, in terms of energy resources for transportation. Let's follow through on that knowing, to ensure more meaningful energy consumption for all concerned in the decades to come.