Thursday, May 31, 2007

America, is gas too expensive to drive?



Only when it hits $4.38 a gallon says respondents to a recent Wahington Post poll.

But last year they said $4.16 a gallon was the breaking point.

Do we hear $8.00 a gallon?

4 comments:

MC said...

Here in Europe, there are some countries were gas costs more than 7 dollars per gallon (more or less 1.4 euros per litre).

Still I'm surprised that the increase in gas price in the last years has had a weak impact on car usage..

:(

Editor said...

At least the extra tax money attached to gasoline in Europe goes toward helping to support mass transit.

In the USA, gas taxes are used to build more roads.

Perhaps we need a $2 tax per gallon in the USA to build high-speed rail and decent mass transit in every city.

Tax bad behavior to pay for public good.

It worked here with cigarettes.

MC said...

Couldn't agree more

Lilia said...

Unfortunately, transportation is relatively cost inelastic which means that it takes a very large increase in cost to cause a very small change in demand. Instead, we need to lure people off the stuff with convenience and comfort... which is another way to say what Brian just said about how the US should use gas tax revenues.