Americans have been driving less in the past few weeks, as high gas prices have dominated the headlines, according to analytics firm Inrix.
Last week, Inrix reported that vehicle trips across the country on weekdays were down 2% from the previous week. There were some regional differences, with declines typically seen in states in the Midwest and South. Inrix noted that states in the west and northeast did see growth. In all 25 states with the longest average travel times, the number of trips decreased during the study period.
The biggest differences were in Kansas and Missouri, where driving decreased by 14% and 11%, respectively. Inrix suggested that rising gas prices could hit the Midwest particularly hard due to the predominance of agriculture, which would necessitate fuel purchases not only for cars, but also for agricultural machinery.
The company also believes that gasoline prices may be reaching a breaking point where they actually begin to affect driving habits. This is important because, as we’ve reported in the past, gas prices don’t always affect how many people drive.
But given the different dynamics of the pandemic and the ongoing shortage of supply, things are different this time around, and we’ve seen some signs that fuel-efficient models are working.
The tipping point for the impact of gasoline prices on travel was previously thought to be a period of sustained over $3.00 per gallon. That’s far behind us now, though the AAA reported on Thursday that national US gasoline prices have actually fallen slightly, to about $4.28 a gallon.
While high gas prices are an inconvenience to many car-dependent families, we must also recognize that reducing car travel is good for the environment. More fuel-efficient cars will also cut emissions, but current consumer preferences and regulations are not pushing the auto industry in that direction.
Many economists, policy experts and industry leaders have long argued that the best way to push the industry to even higher levels of gas consumption is through a carbon tax. No wonder the oil and gas industry is against it.
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