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Study: Telecommuting can save American households $1.7 billion per year

By | March 16, 2011, 2:45 PM PDT

With gas prices nearing almost $4 dollars at the pump, we need to seriously reconsider our dependence on oil. While public transit, biking and walking help tremendously towards that end, the biggest untapped opportunity in eco-friendly transportation is probably —  telecommuting.

Working from home

A new paper from The Mobility Choice coalition by Justin Horner (PDF) finds that the average telecommuter saves 40.6 gallons of oil per year by telecommuting just twice per month.

Currently roughly 5.2 million Americans telecommute at that rate, saving approximately 10 million barrels of oil annually (the average telecommuter’s normal on-road round-trip commute is 35 miles). This significant reduction in car travel not only reduces our usage of oil, but also lowers harmful greenhouse gas emissions.

As the study says, “Telecommuting gives employees the flexibility of working from home, reduces transportation costs, stands as a competitive benefit for businesses to attract employees, takes cars off the road to reduce peak congestion, and cuts vehicle travel, reducing the imperative to use oil and pollution.”

In most urban areas Americans are already wasting the equivalent of  a full workweek stuck in traffic every year, the study says. In the top 15 large urban areas (such as Chicago and Houston) the average commuter uses 39 excess gallons of fuel and spends $1,166 in extra congestion costs. Imagine avoiding all of that from the luxury of your own bed!

If the 10 million Americans, who currently have an option to telecommute, actually did so at least twice per month, telecommuting could save us a whopping 21 million barrels of oil annually and save American households a total of $1.7 billion per year, the study finds.

But it’s not just you who gains from telecommuting. Employers can save tons of money on expenses resulting from workspaces, parking, and energy use. In real world terms: currently 40 percent of IBM’s employees telecommute, saving the company nearly $2.9 billion in reduced office space needs since 1995 (this doesn’t even include the energy cost savings).

We already have the technology today to do most of our work from home. And with telecommuting you not only buy yourself an extra half hour to sleep in the morning (the time you would spend in traffic), you also provide economic benefits to yourself and your employer. To sweeten the deal, certain auto insurance carriers also offer lower premiums to frequent telecommuters.

While telecommuting is not for everyone, most studies have found that it actually increases productivity. So the next time you know you’re going to be spending 10 hours in front of a computer, stay home and do it.

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Ami Cholia

About Ami Cholia

Ami Cholia was a contributing editor for SmartPlanet in 2011.

Ami Cholia

Ami Cholia

Contributing Editor, Transportation

Ami Cholia has written for AltTransport, Inhabitat, The Huffington Post and Sunday Mid Day in India. She holds degrees from the University of Texas at Austin and the Columbia University Graduate School of Journalism. She is based in New York.

Follow her on Twitter.

Ami Cholia

Ami Cholia

Ami does not have financial holdings that would influence how or what she covers.

She writes for SmartPlanet and is not an employee of CBS.

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RE: Study: Telecommuting can save American households $1.7 billion per year
I worked from home full time for 15 years; I didn't even have a desk
at a company-owned facility. (Now I'm back in an office.) I always
thought my telecommuting was nicely green, then just recently
someone pointed out a trade-off. Since I was home during business
hours, I was heating or air-conditioning a space that could otherwise
have been turned down or off for 10 hours a day. How does that
home use of energy compare to the gasoline of commuting?
Posted by charley cross
17th Mar 2011
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RE: Study: Telecommuting can save American households $1.7 billion per year
And if you telecommute every day you'll save TONS of gas, because your job will be off-shored.
Posted by dmm99
17th Mar 2011
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RE: Study: Telecommuting can save American households $1.7 billion per year
dmm99: That's right... many years ago, when the PC was still in
their infancy, I heard that the gain in productivity the new kind of
technology would bring to us would allow everybody work less
hours every day, or even less days per week, and we would be
able to enjoy our families/friends more time...
Now you look at US 21st century, and you see people working
over 40 hours a day, with way less folks around than it used to
be, and management always pushing for more work with less
payment. I heard on of them telling my team our bonus for the
year end would be 'be employed'...
But look at this positive side... if everybody is off-shored, there
will be no need for management as well, as they could be off-
shored too... Maybe, at some point in the future, we'll be able to
immigrate to the off-shore countries and try to become 'alien
residents' there, eventually get their citizenship!!!...
Posted by FuzzyIce
17th Mar 2011
0 Votes
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RE: Study: Telecommuting can save American households $1.7 billion per year
1> "the average telecommuter saves 40.6 gallons of oil per year by telecommuting just twice per month." I find that highly suspect. By telecommuting twice a month, I would save 3.5 gallons of gasoline, but I would use more electriciy at my house, and the change in energy use at the office building would be negligible. My less energy consious co-worker would save 48 gallons of gasoline (he drives a pickup and lives 14 miles away).

Offsetting the savings is the fact that if you're home, you use more gas, electricity, and water than when you're not, and this offsets some of the net savings in gasoline. The utilites in our office building run whether we're here or not, and one or two less people in a building with hundreds of workers won't reduce the amount of A/C needed. We don't have tolls or parking fees.

There are 300 million Americans who don't live in NYC, Seattle, Chicago, or Houston.

2> Many, if not most, managers have a difficult time with telecommuting. A company I worked for moved to a new offce, and the Internet service wasn't ready. So, three people with laptops and 56K modems connected to the Internet, and then used Internet Sharing and the local network to connect desktop users. The bosses told everyone to come back to the offce, because "we need all our people here."
Posted by bb_apptix
17th Mar 2011
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Dmm999 is right..
Companies usually look to teleworkers when existing office space runs out or they want to close an office.

Including lap tops and IP phones it costs us $3,000 to setup a remote employee and another $100 per month per remote employee in related support costs.

That cost has to be compared with the expense of setting up a new office space or ongoing expenses for an existing location and out sourcing. When companies do the math, out sourcing usually wins because the monthly per employee costs are lower.

The decision to out source usually comes down to the value of the individual employee and the nature of the job.
Posted by Hates Idiots
17th Mar 2011
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RE: Study: Telecommuting can save American households $1.7 billion per year
I'm definitely more productive since I can work many more hours not
wasted on the road. I'm a night owl and I often work until 2 or 3 am.
The early morning hours are a waste for me since I'm brain dead.
Also, we don't keep the house any warmer or cooler when I'm here
than when I wasn't. Even my lunch breaks are shorter since I don't
have to go anywhere but downstairs.
Posted by eco-homestore
18th Mar 2011
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RE: Study: Telecommuting can save American households $1.7 billion per year
Being out of the office also means that I don't get involved in office
gossip or politics (even inadvertently). Nothing but work for me.
Posted by eco-homestore
18th Mar 2011
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RE: Study: Telecommuting can save American households $1.7 billion per year
To answer Charley on the energy use of a home office:

One US gallon of gasoline has the energy of about 36 kWh. According to Michael Bluejay the energy guy, the average home electric use is about 31 kWh per day.

So, if you are average in home energy use, you are using around one gallon of gasoline in energy per day.

EVsRock!
http://www.evsroll.com
Posted by EVsRoll
18th Mar 2011
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RE: Study: Telecommuting can save American households $1.7 billion per year
Telecommuting shifts costs around along with some intangible costs that are never factored into the equation.
1) Nature of the job. Some jobs CAN be done remotely - if they are very narrow in scope, repeatable and have canned applications that people use to accomplish their task. Help Desk function is the classic example.
2) Back end support. Course to telecommute you the company NOW has to have a complete external to internal communcaiton system along with the extra security required to get into the network to do your job. And not just a SINGLE path - but at least two to avoid problems of a single point of failure. So now you need extra communication costs, extra servers, extra storage, extra people to manage all of that and the associated costs that go with them.
3) Communication with others. As mentioned no office politics anymore - course if you are not there and someone else who IS gets promoted every time and not you - that's your choice for saving some money! There are lots of times you overhear things - true or not - that helps in the job. I've gone into other areas and saw them working on their problems which when then allowed me to avoid problems in MY job - because I could see what was going on where and knew my app failing was due to other issues. If I was telecommuting I would never had known about it.
I think most of these studies are like push polling - looking at only the aspects that prove the point and not the total enviroment.
Posted by TAPhilo
18th Mar 2011
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Balance 50-50 is good - Into the office 2 or 3 times a week:
Working from home:
- no traffic nightmare (life is just too short to sit in traffic) and big savings in mileage
- double productivity with fewer distractions
- less stress with natural light and less unwanted noise
- face to face video chats & screen sharing as required

Heading into the office:
- great to see people and have those ad-hoc discussions that count
- encourage focused meetings which I find I give me better use of my time

When oil doubles in price or more.. and video chat/tele-presence solutions improve & become more pervasive, I suspect the choice will be obvious to the masses.

Cultural challenges at play here too:
- baby boomers who may not be that comfortable with this technology/mode of operating will retire
- job security fears which I think can be solved if people felt their efforts were measurable (vs displays of looking busy) and telepresence / telecommuting technologies improve

When you think about it, all those people jumping in their little cars and fighting their way into the office in back each day to sit in front of a terminal is really quite ridiculous.
Posted by rollo19
7th Jul
0 Votes
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Stats Anyone?
It would be nice to have some descriptive stats to encourage a more objective conversation:
daily commute (time & KW/hrs & parking & the carbon bill)
home office heating/cooling costs (KW/hrs)

Just to throw it in there, it would be interesting to have stats on a large takeaway coffees: Packaging, Milk and all the costs associated with producing that (water & energy), Coffee..
Has anyone seen any?
Posted by rollo19
7th Jul
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