Americans have been driving further — 40% more than 25 years ago — and using more gasoline in bigger, more powerful cars and other light duty vehicles.
But higher gasoline prices have had a significant impact. The rate of growth in gasoline demand slowed sharply from its 1.6% per year pace (1990-2004) to 0.3% in 2005, and continued to grow slowly in 2006, at 1.0%.
And for the first time in 25 years, motorists’ average mileage went down. Overall, though, according to the CERA report, improved automotive efficiencies and one of the lowest fuel tax rates among Western countries have kept gasoline and oil’s share of average U.S. household budgets at 3.8% in 2006, slightly above the 1960s’ 3.4% to 3.6% level despite rising world oil prices.
Gasoline and the American People: A CERA Special Report
Higher gas prices have helped motivate. Maybe we should raise fuel tax (to pay for my bicycle trails). All in favour?




My good friend ET (Elaine Tyerman) just delivered an early Christmas present.
