Effects of Gasoline Prices on Driving Behavior and Vehicle Markets

New report from the Congressional Budget Office: "This Congressional Budget Office (CBO) study—prepared at the request of the Ranking Member of the Senate Budget Committee—relates rising gasoline prices to changes in how fast people drive, the volume of highway traffic, and rail transit ridership. It also examines the effects on market shares, fuel economy, and pricing of cars and light trucks purchased over the past several years. With the worldwide price of oil continuing to rise, this study provides an indication of the kinds of adjustments consumers would make if gasoline prices continue to rise, and of the implications of rising gasoline prices for policies that would discourage gasoline consumption and thus limit the growth in carbon dioxide emissions. In keeping with CBO’s mandate to provide objective, impartial analysis, the study makes no recommendations."  [RJ]