Change for good: Gasoline price shock might have altered habits permanently

[marmar]

from the Columbus Dispatch:



Change for good
Gasoline price shock might have altered habits permanently
Saturday, August 16, 2008 2:53 AM


The enormous decline in the number of miles driven by Americans this year is evidence that the law of supply and demand works, and people can change even deeply ingrained habits.

Household budgets absorbed rising gasoline prices for years, but when prices hit $4 per gallon, demand waned.

A June report by Cambridge Energy Research Associates said that gasoline demand in the United States likely will decline in 2008, for the first time in 17 years. The Federal Highway Administration reports that Americans drove 12.2 billion fewer miles this June than in June 2007.

In Columbus, city engineers think overall traffic has dropped about 4 percent in recent months on I-70, I-71 and Rt. 315.

The unprecedented decline in demand raises an important question: Will the shock of $4 gasoline wear off as prices adjust downward? Will Americans fall back in love with SUVs and long one-person-to-a-car commutes?

If we're smart, we won't. And some signs suggest that's the case.

New habits are being developed as more people use public transit, rediscover bicycling and walk farther than they have in years. They're also switching to more fuel-efficient cars and encouraging carmakers to make even better ones. The market is shifting.

The Central Ohio Transit Authority reports ridership is up 9.3 percent over last year. Stricter fuel-efficiency standards for new cars mean even those people whose driving habits don't change much eventually will use less gasoline. ......(more)

The complete piece is at: http://www.dispatch.com/live/content/editorials/stories/2008/08/16/drop.ART_ART_08-16-08_A8_ANB1DBI.html?sid=101