Americans Driving Less

May 28th, 2008 By: marc moore | Tags:

CNN says that with gas prices inching perilously close to $4 per gallon, Americans are driving less.

Compared with March a year earlier, Americans drove an estimated 4.3 percent less — that’s 11 billion fewer miles, the DOT’s Federal Highway Administration said Monday, calling it "the sharpest yearly drop for any month in FHWA history."

The Energy Information Administration says gas consumption for the first three months of 2008 is estimated to be down about 0.6 percent from the same time period in 2007.

Interesting numbers.  We’re driving 4.3% fewer miles but only reducing gas consumption by 0.6%??? 

Either there’s something screwy with these stats or we’re driving even less fuel efficient vehicles than last year.  I’m betting on the former as both news reports and anecdotal evidence suggest a definitive shift towards smaller cars is taking place.  Again.

I wouldn’t be surprised to see another drop of this size next year.  It seems likely that gas prices will continue to rise and discretionary travel will continue to be forgone if they do.  However, the vast majority of miles Americans drive are mandatory, meaning there’s a limit to how much less driving we can do in the absence of much-improved mass transit and technological options like telecommuting.

The latter is a promising alternative for many workers; however, many employers are reluctant to loosen the supervisory reins, even for trusted, capable workers whose efficiency wouldn’t be impeded - and might be helped - by working at home.

Perhaps this is an area in which a savvy Congress could help by creating tax incentives for employers who allow workers to telecommute. What are the odds?

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  1. Tully
    May 28th, 2008 at 06:56
    Reply | Quote | #1

    Most of the miles "given up" are the most efficient ones, highway miles on longer road trips. So road miles travelled concentrates down the curve as far as efficiency goes, the urban stop & go that can’t be avoided. That would be some of the difference.

  2. Chris
    May 29th, 2008 at 00:13
    Reply | Quote | #2

    So Tully that would mean all of your driving in Kansas, right ;-)

  3. mymathisgood
    May 29th, 2008 at 01:49
    Reply | Quote | #3

    Does anyone else have a problem with this artical:  73+11+10+8 = 102% of the cost. 

    Article was written by someone with an Agenda that supports rising gas prices.

    By the way are state taxes included in the 11% or is it federal taxes only??

  4. Interested
    May 29th, 2008 at 03:36
    Reply | Quote | #4

    By the way are state taxes included in the 11% or is it federal taxes only??

    Where State taxes vary by state to state No it wouldn’t.

    And not surprisingly just having driven from MD to VT and back last weekend we noticed the more Liberal States were higher prices.  highest we saw was 4.26 in CT.  (the same day it was 3.87 in VT and 3.78 in MD, 4.17 in MA - 4.03 in NY 2 days before)

    here’s an interesting glance

    http://www.gasbuddy.com/gb_gastemperaturemap.aspx

    then look at political leanings.

    http://www.cnn.com/ELECTION/2004/pages/results/president/

    Yup - Dem’s are the party of the people all right. 

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