Gas Price really does affect Demand

September 16, 2005 06:22 AM - Lloyd Alter, Toronto

Many months ago when gas was still cheap we derided the President of GM for saying, about gas prices and SUV sales, "Rich people don't care". We have said all along that when gas costs more than a bottle of Dasani alternatives become attractive. People vote with their wallets and as this graph shows, consumption of gasoline has dropped precipitously since the current spike. Are people walking more? Riding bikes? Car pooling? The CO2 numbers will follow and the Long Emergency will take just a little bit longer to get here. ::Econobrowser