In article ,
 Rob Perkins  wrote:


> You're referring to long term elasticity. In the long term, the price of
> everything else will adjust around the price of energy. (At least, that's my
> theory.)
> 
  Nope. I am talking pretty much immediately, at least in the past. Gas 
goes up and million miles driven goes down right away. At least 
according to DOT figures over the years .


> But in the process, he also pointed out that short- and medium-term demand
> for billions of gallons of gasoline and diesel is solidly inelastic, and
> shared some interesting observation about sales figures during a time of
> escalating prices. 
> 
     Their figures might be different. As I said, I use million miles 
driven in a year as my yardstick. largely because I ran across it when 
arguing something else. 


> Along with that, he noted the *relative* burden of gas prices, even at
> $3/gallon, consumes a smaller percentage of the average income than at any
> time before in history, which is also worth thinking about, since the
> pattern of conservation historically associated with escalating prices is no
> longer happening. 
    Which really talks more about the relative inexpensiveness of gas in 
real terms instead of elasticity of demand. 


> But when things were tight, they leaned on the government for exploration
> tax credits, and then because the law was written stupidly they quietly kept
> those credits after their margins were back in the
> well-and-truly-comfortable range. Thus, they didn't pay their moral share of
> taxes on the windfall that their profit structure benefitted them.
    Moral share. What is that and how is it measured. 


>
--- SBBSecho 2.12-Win32