That's good news. Look forward to a bigger reduction in miles driven in the future. In the short run, demand for gasoline is highly inelastic with respect to price. As long as price stays high, we will see greater reductions in driving 5-10 years down the road. The price may stay high enough to reduce demand without new taxes, but a European-style gas tax would ensure it. Have a good trip Brendan.
June 21, 2008 at 6:50 PM
[Image] I write this as I'm about to drive to Vermont, which is a stupid idea considering the price of gas.
Anyway, I just read an interesting article from a few weeks ago on CNN.com. Smart people and columnists write about raising gas price to do all sorts of things like cut down on miles and reduce our dependence on foreign oil. You know, all that environmentalist stuff. Well, I guess high gas prices really do cut down on mileage.
Comparing March of '07 to March of '08, a Federal Highway Administration report showed a decrease of 4.3% in miles driven in America, which translates to 11 billion fewer miles. That's crazy! Gas prices are may higher now, I wonder what April, May, and June reports will show.
I try to avoid getting on that "one less car" bandwagon or the environmental benefits of cycling bandwagon, mostly because I find that evangelizing to to be smug and preening. But, I had to point some attention to this article. I mean, that's a lot of miles.
"Old News"
1 Comment -
That's good news. Look forward to a bigger reduction in miles driven in the future. In the short run, demand for gasoline is highly inelastic with respect to price. As long as price stays high, we will see greater reductions in driving 5-10 years down the road. The price may stay high enough to reduce demand without new taxes, but a European-style gas tax would ensure it. Have a good trip Brendan.
June 21, 2008 at 6:50 PM