Friday, June 27, 2008

Oil prices and changing incentives

Here is another example of how the high oil prices are changing incentives and living habits. The increased heating and transport costs for the residents of suburban areas is incentivizing people to look to living in the town or city.

Another example of changing lifestyles and incentives is the fact that in March, Americans drove 11 billion fewer miles on public roads than in the same month the previous year, a 4.3 percent decrease — the sharpest one-month drop since the Federal Highway Administration began keeping records in 1942.

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