Here is an incisive analysis of the economics of gasoline:
http://slate.msn.com/id/2126981/
And another:
"Go Ahead and Drive Less, if You Can"
http://www.nytimes.com/2005/09/25/weekinreview/25hakim.html
The other day I complained about economists who still say demand for oil is
"inelastic." The 1970s oil crisis proved that is not true. However, as
these two articles show, short-term demand is inelastic compared to other
commodities. There are some easy steps that people could take to reduce
consumption, such as leaving the SUV home and driving the car. After that,
it would take about five years for major changes to work through the system.
- Jed
