Whats the Price Elasticity of Demand for Gasoline?
In response to the ideas advocated by the Pigou Club I’ve read a number of comments such as the following: “A rise in gas taxes won’t do anything to change people’s behavior. Are people going to stop driving to work if prices go up? Are they going to quit their jobs? Are they going to sell their house and move closer to work? Of course not! Higher gas prices do nothing but give the government more of our hard earned dollars.” In “What’s the Price Elasticity of Demand for Gasoline? (Hint: It isn’t zero)” we examine what the price elasticity of demand for gasoline is by examining two meta-studies on the issue. I think this is going to be my last piece on gas taxes for awhile. I’m getting kind of Pigoued-out. Comments are closed for this post. See All Posts
