Rapid Response

Is There a Silver Lining to Rising Gasoline Prices?

Authors: David C. Grabowski, PhD

Abstract

A newly published study suggests that an increase in gasoline prices, sustained over time, will reduce traffic fatalities and deaths due to air pollution. However, gasoline prices are relatively volatile and there is little indication that a large price increase will be sustained such that individuals will dramatically alter their long-term driving behaviors. Gasoline taxes are one method of ensuring higher prices over time but they introduce economic costs, and ultimately, may not be politically viable.

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