Consumer attitude towards fuel consumption in the United States

Abstract

The shortage of energy will exist in the world for a long time. Because of the many ‘crisis’ situations, which arose during the last 5 yr, various presidents have suggested different alternative solutions to the problem. Many of the suggested legislations have not been passed by the Congress and may never pass it in the future.

One of the reasons is that the people are not in favor of any particular solutions that the presidents suggest to legislature. Consequently, the Congress is reluctant to pass a legislation which is not acceptable to the majority of the people.

The choice of the consumer between rationing and fuel consumption depends upon income, job category, number of cars owned and age. In the study, income and age variables proved important in determining the choice a consumer would make between rationing and price increase. A consumer with a higher income and younger age would likely choose price increase over rationing and vice versa. Also consumers who drive the most will favor price increase over rationing. Other socio-demographic factors not found to be good predictors of the choice a consumer would make between rationing and price increases.

The study concludes that to curtail gasoline consumption increase in prices would be an effective tool, while at the same time subsidizing lower income level and aged consumers.