Is it Fair for Car Insurance Companies to Consider Gender, Age and Driver Occupation?

My brief expert opinion in WalletHub:

Insurance companies are under substantial strain from increasing losses due to many reasons such as extreme weather (e.g., floods that damage vehicles), increasing number of crashes and fatalities, increasing rates of distracted and impaired drivers (e.g., more states have legalized marijuana), etc.

These losses have necessitated increases in premiums. A fairer distribution of increases is done by assessing risk factors and assessing higher premiums for higher-risk drivers. Young male drivers and occupations with driving as a major part of the job (e.g., Uber, delivery workers) are examples of groups associated with higher crash involvement rates.

I have a good example of risk-based car insurance premiums in my own household. My spouse and my daughter have their own car and insurance. Both are insured by the same insurance company, and both drive 2018 model compact cars of similar market value. My spouse is a white-collar worker in her late 40s. My daughter is a 21-year-old college senior; her premium is 65% higher than her mom's!

2023's Greenest Cities in America

 My commentary in WalletHub's ranking of US green cities.

Honolulu ranked 2nd out of 100. Reno did well at 33.

Should cities invest in going green? What are the benefits?

Environmental and transportation solutions need to be tailored to an area's specific characteristics. Solutions for Tokyo are likely less suitable for Chicago. Cities with acute pollution issues should focus on smart city mitigations targeting pollution, such as electrification of bus fleets and incentives for EVs. Cities with acute traffic congestion should focus on smart city congestion mitigation, such as adaptive traffic signal management and intelligent time-dependent road pricing.

What policies or investments offer the biggest bang for the buck?

Smart traffic management for both arterial streets and freeways is the most common low-hanging fruit with moderate costs and substantial congestion and pollution reduction. Priority lanes and traffic signal preemption for Bus Rapid Transit are cost-effective smart city improvements for public transport.

How can state and local authorities attract renewable energy companies and other green businesses?

By incentivizing the electrification of transportation, substantial new demand is generated which creates a need for power supply, which in turn, makes the establishment of new renewable energy suppliers welcome. A conducive framework for power purchasing agreements needs to be in place.

What are some easy ways individuals can go green without much cost or effort?

Several smart home solutions are affordable and effective in reducing power and fuel consumption. Hybrid light-duty vehicles are presently the most cost-effective choice for commuting and highway travel. Unfortunately, recycling is more of a feel-good initiative than an effective green option given that less than 10% of what is put into recycling collections is actually recycled, reused, or repurposed.

In evaluating the greenest cities, what are the top five indicators?

A generic list may serve as a guideline, but each city needs to focus on its most acute issues and deploy smart solutions that its taxpayers can afford, for mitigations.

Consumer Reports Can Be Wrong!

CONSUMER REPORTS: Can the Grid Handle EVs? Yes! 

They should really study this series: The EV transition at scale poses daunting challenges

 Dear Chris,

The answer in your blog is incorrect. It is predicated on:

"...Americans drive approximately 2.9 trillion miles a year,..." and "...The average efficiency of all 20 comes to 3.1 miles per kilowatt hour. "

Totals and averages can be grossly misleading and this is the case here.

Total power generation capacity may match total EV KWh demand over the course of a year. But this totally ignores diurnal patterns and Peak Demand periods! The grid often has a hard time providing enough power for the usual demands plus a/c on hot and humid days.

Some locations have spare capacity, some are nearly maxed out (California, Hawaii, many others), and the US grid is far from being interconnected to cover demand deficits.

This question can be answered with reasonable confidence only at the local/regional level based on historical patterns of daily KWh consumption, along with specific forecasts of EV in traffic by type... car, SUV, pickup, delivery truck, long distance truck.

-- 
Panos D. Prevedouros, PhD
Reno, Nevada
Past Chairman and Professor Emeritus
Civil and Environmental Engineering
University of Hawaii at Mānoa

Quick Rail Boondoggle Update

Rail boondoggles seem to multiply in the US.

• Honolulu rail is not alone at starting at under $5B in 2021, and surpassing $10B in 2020 with no ending in cost escalation, no opening date and continuously revealed construction problems (i.e., hammerhead pillar cracks) and operational problems (i.e., track switching "frogs.")

• Now Austin's rail which started at $5.8B has surpassed $10.3B while mostly incomplete.

• The pseudo high speed California HSR has surpassed $100B and is nowhere near Los Angeles or San Francisco.

Furthermore, "transit agencies nationwide are taking in less farebox revenue, with agencies recovering, on average, just 12.8 cents for every dollar they spent on operations in 2021, down from 32.3 cents in 2019." [Planetizen]

This indicates a much lower utilization and much higher resource consumption and pollution per passenger mile.

Let's build and expand more of these losers, shall we?

Why Panos Prevedouros left Hawaii

Mahalo to Dr. Keli'i Akina for the invitation and probing questions.

The state is at risk of a major natural catastrophe, he says, and its “suicidal” energy policy will just make everything worse

Hawaii’s policy mandate to go to 100% renewable energy is nothing short of suicidal.

That was the message of Panos Prevedouros, former chairman of the University of Hawaii civil engineering department, who spoke with host Keli’i Akina, president of the Grassroot Institute, on the June 22 episode of “Hawaii Together.”

Described by Akina as “one of Hawaii’s leading public intellectuals,” Prevedouros moved just last year from Honolulu, his home of 31 years, to Reno, Nevada. During his half-hour conversation with Akina, he explained why. Foremost was his concern about Hawaii’s energy policy and its relation to personal safety.

Because of its geographical isolation, he said, Hawaii needs reliable energy. In the event of a natural disaster, for example, Hawaii’s hospitals “must have reliable electricity for 10, 15, 20 days, or however long it takes for the military and other external providers of health assistance to come help a highly populated island like Oahu or Maui.”

Renewable options like wind and solar farms are not highly reliable, he said, especially since they can be totally demolished by the strong hurricane winds. Thus, Hawaii should be making reliability its top priority, even if that means using coal.

In general, Prevedouros said, Hawaii is totally unprepared for a natural disaster.

“I don’t see the [power] plants [or airports] being hardened. … Our harbors are absolutely not prepared to deal with a major surge from a hurricane or a major surge from a tsunami. Our harbors will be a complete mess. There will be cranes and they’re toppled and there will be containers all over the place.”

And when the Navy arrives from San Diego to help, he warned, “there will be nowhere for them to dock. Nobody is preparing plans to have resilience in our harbor.” 

He said the failure of Hawaii’s politicians to prepare better for a disaster is not peculiar to Hawaii.

“That’s a malaise that exists almost everywhere politically, because politicians, really, do not take a 1% to 2% risk very seriously, and plan to invest big money in that. However, unfortunately, bad luck … really catches up with these things, and we really need to protect the population.” 

Prevedouros said aside from his fears for his family’s safety, he left his beloved Hawaii because of a litany of “wrong” policy decisions.

“One wrong decision does not really change the whole picture,” he said. “There were so many wrong decisions, a litany of which, that, actually after that, I said, ‘Enough is enough.’” 

Well known as a critic of the Honolulu rail, Prevedouros said the recent proposal to stop the system a mile or so short of Ala Moana Center is “definitely a step in the right direction, but it’s not enough. They should have had the guts to stop it at Middle Street, and they probably will be forced to do something like that because now we have the other gift: inflation” — which is sure to drive up its construction costs.

To watch the entire conversation, click here.