U.S. miles driven drops again

Shouldn’t be a surprise by now, but yet again, Americans drove less year-over-year in July 2008 versus 2007. I think we can definitively put to rest the idea that demand for gasoline doesn’t change much with price, though apparently it is a bit sticky — prices have to remain high for a while before people start changing their lives.

Matthew Yglesias makes the obvious argument for a carbon tax.

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One response to “U.S. miles driven drops again

  1. I agree that we need to keep the prices high in order to continue with the change. People have such short memories after a crisis is over.

    But I’m not sure there is a politically feasible way to further tax oil consumption without stalling out our weak economy.

    The next President definitely has a pickle on his hands.

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