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> However this doesn't reduce consumption, it just shifts the consumption to the developing world This is true if production levels aren't responsive to prices
by thaumasiotes 10mo ago
> However this doesn't reduce consumption, it just shifts the consumption to the developing world
This is true if production levels aren't responsive to prices, but I see no reason that would be the case. Petroleum production levels are known to be quite responsive to upward price movements.
- mr_toad 10mo agoThe producers vary production to drive price movements, not the other way around.
- fy20 10mo agoThere have been seconds order effects that have led to lower fuel consumption. Cars typically consume less fuel for the same distance driven compared to two decades ago. Part of that is increased fuel economy, part of it is smaller / more efficient cars growing in popularity.