Decreasing Driving Trend

A New York Times (NYT) article highlighted the findings of a report by U.S. PIRG, a nonprofit consumer advocacy group, on the recent downward trend in driving rates. According to the report, since the mid 2000’s the number of miles driven has dropped, both in total miles and per capita. Some of the reasons for the trend, specifically among younger Americans, included:

1. the Internet and other technological changes that make virtual contact more accessible and may reduce the need for actual contact;
2. changes in driving laws that make obtaining a driver’s license more difficult, such as Graduated Drivers’ Licensing laws and additional training requirements; and
3. the cost of automobile ownership, particularly increased fuel costs.

In addition, baby boomers’ (age 50 to 65) commuting needs are decreasing as they age out of the daily work force.

But other groups quoted in the NYT article, including the Reason Foundation, Inc., believe the decrease in driving may be temporary. Arguments made against the decline’s permanence include (1) as younger drivers age, they are more likely to move to areas that require traveling greater distances or are less accessible by public transport and (2) as the economy improves, young drivers will be more likely to purchase vehicles. Further, if self-driving cars become common, elderly people may use such vehicles later on in their lives than they are currently able to do.

The article mentions the effects of decreased driving rates on financing transportation investment. As driving declines, the revenue generated from gasoline taxes correspondingly decreases, a trend that could cause policymakers to think differently about how to fund transportation projects.