A recent report that I coauthored, "Managing Transport Challenges When Oil Prices Rise" provides practical policy guidance on how to manage the risks of rising oil prices by increasing transport system efficiency. People with short attention spans might think that this report is already outdated, since global financial uncertainty has replaced rising fuel prices as the crisis-of-the-month. Leading businesses are bankrupt, employees are frightened, consumers are cautious, and fuel prices plummeting.
People’s response to death typically proceeds through various stages: disbelief, denial, anger, bargaining, guilt, and eventually acceptance and hope. Motorists’ response to increased fuel price seems to follow similar stages:
It turns out that the “law of demand” (the tendency of higher prices to reduce consumption) and the principles of urban economics (that improved accessibility increases land values) still apply. If we are smart, we can use these to help solve problems and benefit consumers.