Empirical evidence that pricing signals actually do change behavior:
As average gas prices hit a record high of $4.108 a gallon this week, the government released new data showing that drivers have cut back their use of the fuel to levels not seen in five years.
The average price of gasoline in the U.S. has been above $4 a regular gallon for more than a month, AAA reports, putting a dent in gasoline demand.
Even through the Fourth of July weekend — a time when Americans traditionally get on the road — gasoline consumption dropped 3.3% from last year to 9.347 million barrels a day, according to weekly data
Adam Smith would be proud.
July 10th, 2008 at 7:28 pm
Exactly. Higher gasoline prices are forcing Americans to drive less, buy more fuel efficient cars, and use public transportation more. Things that Americans should have been doing for decades.
Now if we can get liberals and conservatives (especially) to stop selling snake oil solutions that won’t solve the problem of higher gasoline prices in the short or even medium term.
July 10th, 2008 at 11:24 pm
Agreed, Kevin. This article is good news for this country in the long run – we need to change the way we consume.
-Responsible Citizens for High Gas Prices
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