Higher Prices at the Pump = Smaller Cars

People in New Zealand are buying smaller cars as petrol prices rise without, apparently, a reasonable explanation. I'd say this is a nice silver lining to higher prices at the pump. if only it could happen in other places as well, congestion might not be this bad. Here's what I mean: where I live, a lot of mini-jams are caused by GMC trucks or equivalent trying to navigate streets made for Smarts, and mini-jams quickly turn into major bottlenecks.

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It can happen.  Back in 2008, it even started happening in the US - to the point where some people ditched cars entirely for scooters.  Today, thanks in part to fuel economy standards, there's a trend toward larger vehicles.  People will drive the most expensive vehicle they can afford; offer them trucks at 20-30MPG and $80/bbl, and they'll drive trucks.  

Fuel economy isn't going down - but we can still drive up the price of oil. Perhaps the solution is to stop defending the Middle East.  We'd get multiple benefits: 

1) High oil prices would encourage people to buy more sensible vehicles, untangling the streets.
2) Domestic industries would benefit from investment in efficiency.
3) Non-OPEC oil production would increase, further weaning the world off unstable tyrants.
4) Governments could stop wasting money babysitting oil-producing nations.

I'm all for it. 

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