
An article on the CNN website looks at how taxation may have had an impact on gas consumption, "Gas consumption Europe vs. U.S. There is some evidence Europe's high gas taxes have capped its oil consumption.
Oil use in the United Kingdom has basically stayed flat from 1980 to now, while in France it's dropped 17%, according to figures from the Energy Information Administration.
In the U.S., meanwhile, oil use is up 21% over the same period, although the country has added more people and seen its economy grow slightly faster.
Americans have taken advantage of cheap gas prices to do other things - like buy bigger cars and bigger houses further away from city centers, said Schipper.
On a per capita basis, Americans use three times more oil than Europeans, he said. That means Americans are more exposed to rising gas prices than their counterparts across the Atlantic.
"Five-thousand square feet in the suburbs, that's much rarer in Europe," said Schipper, referring to big homes. "We dug our hole."
In a previous post I quoted a survey that showed that gas prices would have to triple before they had any lasting effect on consumers driving SUVs and pickups and, not as was the case in the '70s when many consumers bought smaller more fuel efficent cars. The price of gas is a hedge, as is the price of grain and corn, a hedge against the low American dollar. At some point it has to come up as it is having an adverse effect on the rest of the world. When that happens it will be business as usual unless some has the courage to have high taxes hoping it will lead to a more fuel efficient and greener America.
photo by beeboo wallace
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