The Oil Drum: Europe

Cross-posted from GG:

Via Detroit Free Press: Fuel prices won't drive US to conserve

I'd take this article with a grain of salt, coming out of the Motor City, but it did have some interesting analyses.

Many factors play into America's reluctance to conserve, but psychologists say two facts of human behavior dominate: We get used to high prices that are reached incrementally. And we're more afraid of losing something than we are motivated by the advantages of giving it up.

Combined with surveys showing that our interest in fuel efficiency rises and falls with gasoline prices instead of being an ever-increasing concern, it's reasonable to say that the United States won't slow its fuel use, at least not for a long time.

There is a tremendous headwind to Americans adjusting their driving habits, much of it built up over the past few decades of suburban to exurban transformation. I do agree with this article that, more importantly, people are just afraid of a lifestyle not built around the automobile. They are afraid of a loss of "freedom" to be a destination in a moments notice, afraid of "losing time" to a bus commute that may take an extra 30 min a day. They are afraid of not being to keep up with the Joneses if Charlie can't go to soccer practice anymore, or if G-d forbid, they have to be seen standing on the corner waiting for the bus.

More insight:

As fuel prices rise everyone seems to be talking about the price we pay at the pump. However it also seems that many people don't really understand how that price comes about. Hopefully this short piece will help.

There are three main components to the price at the pump:

• Price of the product
• Excise duty
• Value Added Tax (VAT)