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Why do people use so much gasoline?

Updated: 8/20/2019
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11y ago

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Most don't because most don't own cars.

In less developed countries, the ones that do, their cars aren't as efficient as ours because they're cars are about 2 decades behind ours.

In developed countries, such as the U.S., we use a lit because we travel a lot, do aimless running around, don't get the best mileage due to personal driving styles, and to power different tools like weedwhackers and lawn mowers.

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Q: Why do people use so much gasoline?
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What mechanisms might help ensure a more equitable use of resources?

Incentives are really the only mechanisms that will ensure a more equitable use of resources and can take many forms. Let's use gasoline as the example. There are two resources being used when buying gasoline: the gasoline, itself, and the money you use to buy it. When gasoline is cheap, it means that the gasoline resource is plentiful so a lot more of that resource will be used. And because it is cheap, it uses a lot less of the money resource to buy it. There is no incentive under this arrangement to conserve gasoline as the supply is great and the cost is cheap. When prices go up, it generally means that gasoline is in less supply and it definitely means that more money has to be spent to buy the same amount of gasoline. This higher price causes people to use less gasoline so they don't have to buy as much. Thus, the incentive is created to (a) conserve gasoline and (b) spend less money buying gasoline. This is just one example but typically any incentive to use less of something means penalizing the overuse of it.


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