The Price of Gas and Fuel Consumption
Paul Krugman saw the "Five Myths?" about gas consumption and conservation and sends along this graph. It's from his favorite textbook. He says:
Saw your "five myths" post. The thing is that the big issue isn't how much you drive, but mileage. And there's a strong effect of prices on consumption, mainly through that channel.
Oh, you do have to be careful, though: Europe uses a lot more diesel, so you don't want to just look at gasoline.
Here's the figure for use in the 2nd edition of the Krugman/Wells text showing that higher fuel prices are associated with lower fuel consumption:
Posted by Mark Thoma on Monday, January 29, 2007 at 03:53 PM in Economics, Environment, Oil |
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