Source Newsroom: Cornell University
Shanjun Li, an expert in energy consumer behavior and energy economics, and professor at the Dyson School of Applied Economics and Management at Cornell University, discusses factors behind the current gasoline price spike.
“Gasoline prices at this level will be more and more common due to underlying market determinants, namely growing oil demand from emerging economies and stagnant production capacity. In other words, this is something that the consumer will have to get used to.
“We need to keep in mind that many European countries have gasoline prices that are about twice as high as what we have here, largely due to their much higher gasoline taxes. In addition, if we want to be serious about dealing with negative consequences associated with gasoline consumption such as pollution, high gasoline prices will be an important signal or leverage to induce consumer behavioral changes such as using more fuel-efficient vehicles or public transportation.”