Michael, If fuel prices doubled (to essentially what they are in Europe) what would happen in the US? Kunstler obviously believes it is the end of the American way of life. I think the real impact would depend on what it would mean for the personal disposable real income of commuters. If the cost of fuel erodes these incomes significantly, this will have a major effect on local consumption with all the attendent multiplyer effects. What is the effect of current prices on commuters real disposable income?
Paul P Michael Perelman wrote:
How much of an increase in fuel prices will it take to slow down or even reverse the tendency towards sprawl? I live about 90 miles from Sacramento. It's not freeway for much of the trip, but I still know people who commute. -- Michael Perelman Economics Department California State University Chico, CA 95929 Tel. 530-898-5321 E-Mail michael at ecst.csuchico.edu
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