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	<title>Noel Schutt &#187; gas prices</title>
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		<title>Gas prices and world car and bicycle production</title>
		<link>http://schutt.org/blog/2008/10/gas-prices-and-bike-production/</link>
		<comments>http://schutt.org/blog/2008/10/gas-prices-and-bike-production/#comments</comments>
		<pubDate>Fri, 03 Oct 2008 13:25:40 +0000</pubDate>
		<dc:creator>Noel</dc:creator>
				<category><![CDATA[Bike]]></category>
		<category><![CDATA[Cars]]></category>
		<category><![CDATA[Energy]]></category>
		<category><![CDATA[gas prices]]></category>
		<category><![CDATA[graph]]></category>
		<category><![CDATA[statistics]]></category>

		<guid isPermaLink="false">http://schutt.org/blog/?p=63</guid>
		<description><![CDATA[(This is a re-post from last week. The original post disappeared in the server change.) I saw a graph of car and bicycle production in The Economist. The article was On your bike: Obesity and high oil prices are good news for the world’s biggest bikemaker. This was one of the many recent stories on [...]]]></description>
			<content:encoded><![CDATA[<p>(This is a re-post from last week. The original post disappeared in the server change.)</p>
<p>I saw a graph of car and bicycle production in The Economist. The article was <a href="http://www.economist.com/business/displaystory.cfm?story_id=12270958" title="The Economist">On your bike: Obesity and high oil prices are good news for the world’s biggest bikemaker</a>. This was one of the many recent stories on the increase in gas prices leading to more people riding bikes. The graph looks something like this:<br />
<div id="attachment_64" class="wp-caption aligncenter" style="width: 310px"><a href="http://schutt.org/blog/wp-content/uploads/2008/10/bicycle_production.png"><img src="http://schutt.org/blog/wp-content/uploads/2008/10/bicycle_production.png" alt="Bicycle and car production (1950--2007)" title="Bicycle and car production (1950--2007)" width="300" height="225" class="size-medium wp-image-64" /></a><p class="wp-caption-text">Bicycle and car production (1950--2007)</p></div></p>
<p>Car production is increasing as expected, but bike production is even higher. But does this plot tell us anything useful? Doesn&#8217;t world population growth look similar? I found that world population looks like this:<br />
<div id="attachment_65" class="wp-caption aligncenter" style="width: 310px"><a href="http://schutt.org/blog/wp-content/uploads/2008/10/global_population.png"><img src="http://schutt.org/blog/wp-content/uploads/2008/10/global_population.png" alt="World population (1950--2007)" title="World population (1950--2007)" width="300" height="225" class="size-medium wp-image-65" /></a><p class="wp-caption-text">World population (1950--2007)</p></div></p>
<p>This is a huge increase. To make the bicycle production plot more useful, I can find the per capita production. Just divide the production by population:<br />
<div id="attachment_66" class="wp-caption aligncenter" style="width: 310px"><a href="http://schutt.org/blog/wp-content/uploads/2008/10/bicycle_production-pc-mean.png"><img src="http://schutt.org/blog/wp-content/uploads/2008/10/bicycle_production-pc-mean.png" alt="Per capita car and bicycle production (1950--2007)" title="Per capita car and bicycle production (1950--2007)" width="300" height="225" class="size-medium wp-image-66" /></a><p class="wp-caption-text">Per capita car and bicycle production (1950--2007)</p></div></p>
<p>This is a much more useful plot. Bicycle production is going up, but not as fast in the original graph. The current production is actually slightly lower per capita than in the late &#8217;80s. The flatness of the car production line is surprising. I also added a five year moving average to the plot.</p>
<p>Since there are so many articles linking bicycling to gas prices, lets look at the price of gasoline. Because of inflation and other factors, the absolute price of gas isn&#8217;t very useful. I found the consumer price index adjusted gas price:<br />
<div id="attachment_67" class="wp-caption aligncenter" style="width: 310px"><a href="http://schutt.org/blog/wp-content/uploads/2008/10/gas_price.png"><img src="http://schutt.org/blog/wp-content/uploads/2008/10/gas_price.png" alt="US CPI adjusted gasoline prices (1950--2007)" title="US CPI adjusted gas prices (1950--2007)" width="300" height="225" class="size-medium wp-image-67" /></a><p class="wp-caption-text">US CPI adjusted gasoline prices (1950--2007)</p></div></p>
<p>Hmm&#8230; that doesn&#8217;t look as bad as you would expect. This graph does make it really obvious that the data I am using stops in 2007. I can now add the gas price to the production plot. The production scale is on the left, the price scale is on the right:</p>
<div id="attachment_68" class="wp-caption aligncenter" style="width: 310px"><a href="http://schutt.org/blog/wp-content/uploads/2008/10/gas_price_bike_production.png"><img src="http://schutt.org/blog/wp-content/uploads/2008/10/gas_price_bike_production.png" alt="CPI adjusted gas prices and global car and bicycle production (1950--2007)" title="Gas price and bike production (1950--2007)" width="300" height="225" class="size-medium wp-image-68" /></a><p class="wp-caption-text">CPI adjusted gas prices and global car and bicycle production (1950--2007)</p></div>
<p>Interesting. The gas price and bike production don&#8217;t match at all before the mid &#8217;90s. The match for the past ten or so years is pretty good.</p>
<p>These are just some thoughts on getting useful information from graphs. I didn&#8217;t do any actual statistics, but this gives some ideas for how to make these plots more useful.</p>
<p>I highly recommend reading <a href="http://en.wikipedia.org/wiki/How_to_Lie_with_Statistics" title="How to Lie with Statistics">How to Lie with Statistics by Darrel Huff</a>.</p>
<p>Sources:</p>
<ul>
<li>The Economist: <a href="http://www.economist.com/business/displaystory.cfm?story_id=12270958" title="The Economist">On your bike: Obesity and high oil prices are good news for the world’s biggest bikemaker</a></li>
<li>Earth Policy Institute: <a href="http://www.earthpolicy.org/Indicators/Bike/2008_data.htm" title="Earth Policy Institute">Economic Indicators: Bicycles</a></li>
<li>U.S. Census Bureau: <a href="http://www.census.gov/ipc/www/idb/worldpop.html" title="World population">International Database</a></li>
<li>U.S. DOE Energy Information Administration: <a href="http://www.eia.doe.gov/emeu/steo/pub/fsheets/real_prices.html" title="Real gas prices">Peal Petroleum Prices</a></li>
</ul>
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