It's a 58-page doorstop, but a new study from the Congressional Budget Office shows consumer response to higher gas prices. The study began looking at trends beginning in 2003. Here are its key findings:
Freeway drivers are making fewer trips and are driving more slowly. For every 50-cent increase in gas, there was a .7 percent decrease in the number of trips taken. Median speeds dropped by a nominal three-quarters of a mile per hour for every 50-cent increase. And in areas where rail transit is offered, ridership is up.
Though market share for light trucks, including SUVs and minivans, has increased steadily for 20 years, it began to decline in 2004. As a result, the average fuel economy of new vehicles has increased by more than a half-mile per gallon since 2004.
Used vehicle prices have shifted. Fuel-efficient cars have seen their prices climb, while gas guzzlers have seen ther prices drop.
What's noteworthy is that these trends are less dramatic than one would expect. The study found, however, that over a longer period of time, the trends will become more dramatic as consumers make purchase decisions about their cars and about where they live with high gas prices in mind.
Source: Metro Research Center
