Cheaper gasoline prices should spur an increase in driving in the United States and provide a limited boost for gasoline consumption over the summer, after a slow start to the year. Gasoline consumption depends on the volume of traffic (vehicle-miles traveled) and the average fuel-economy of the cars on the road. Traffic volume in turn depends on demographic and economic factors (population, household formation, car ownership, urbanization, average incomes and employment) and to a more limited extent gasoline prices at the pump. Gasoline prices influence fuel consumption primarily through consumer choices about fuel-economy when purchasing new vehicles and choices about the amount of discretionary driving. Rising gasoline prices tend to be associated with slower growth in traffic volumes and slower growth in gasoline consumption (as measured by […]