3 ms·
You're right, it is a big claim, and I should probably walk it back. It's possible that there's such a high demand for driving that the main reason people don'
by NumberWangMan 4y ago
You're right, it is a big claim, and I should probably walk it back. It's possible that there's such a high demand for driving that the main reason people don't do more of it is, say, the congestion, rather than the cost of fuel. This is definitely true in parts of the USA.
It does depend on the price elasticity of the demand for driving. I found this article [1] which finds that if fuel prices go up by 10%, people drive 1% less in the short term, and over the long term, about 3% less. This of course varies greatly from place to place, among different income levels, etc.
[1] https://www.vtpi.org/elasticities.pdf https://www.vtpi.org/elasticities.pdf