Knowledge Problem

Moralizing About Suvs

Lynne Kiesling

On the gas price note, Jonathan Pearce at Samizdata has a post about how high gas prices are more effective than scolding at inducing people to drive more fuel efficient vehicles.

Glenn Reynolds also has a lengthy and informative post on the SUV, including a link to Jonathan’s. Glenn correctly points out that some people actually need the volume and towing capabilities of SUVs, and that government regulations mandating child car seats is a contributing factor.

Neither of those discussions, though, is explicit about a very important factor in the current run-up of gasoline prices: between economic growth and increased fuel efficiency, the amount we spend to pay for fuel is a decreasing share of our household budgets, and is a much lower share than in the 1970s. It’s expensive and annoying, yes, but it’s not the big budget item in most budgets that it used to be.