Knowledge Problem

High Gas Prices: Demand-driven

Lynne Kiesling

I am so in professional platonic love with Tim Haab right now that it’s not even funny. This Environmental Economics post is so wonderful on so many levels:

So let’s take a quick look the basics and then use it to explain why the current high gas prices are your fault. …

The price per mile of travel is increasing (gas prices are increasing) and miles traveled are increasing relative to last year. The only thing consistent with higher prices and higher quantity is an increase in demand. If high gas prices were supply driven we would see consumption decreasing, not increasing.

Do go read the whole thing. I wish every member of Congress and every state’s Attorney General would read this post. I’m very glad that my students will be able to!