Remix.run Logo
listenallyall 8 months ago

Are you sure? Gas consumption is notoriously inelastic. West coast gasoline is already a dollar or more than it costs on the east coast. Do poor people drive less in California than in Florida?

SR2Z 8 months ago | parent | next [-]

Gas consumption is inelastic in the short term, but everything is elastic in the long term.

If you want proof of this, just look at what happens to sales of large vs small cars when the price of gas changes.

listenallyall 8 months ago | parent [-]

I don't know man, gas prices have been consistently pretty high for the last couple of years, meanwhile almost every small car has been discontinued- VW Beetle and Golf, Fiat 500, Honda Fit, Ford Fiesta and Focus, etc... this class of cars basically just doesn't exist anymore.

greeneggs 8 months ago | parent | prev | next [-]

I think everyone drives less in California than in Florida. (Google says ~14,500 miles annually per licensed driver in Florida, versus ~12,500 miles in California.) Gas prices are a factor in this.

quickthrowman 8 months ago | parent | prev [-]

California law requires a special blend of gasoline, which is a lower volume market, which increases the cost. The remainder of the cost difference is transportation costs or taxes.

https://ww2.arb.ca.gov/our-work/programs/fuels-enforcment-pr...

listenallyall 8 months ago | parent [-]

Yes, a number of reasons contribute to the additional cost. But that's irrelevant, we're discussing the impact of higher costs, not the cause of them.