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https://nap.nationalacademies.org/catalog/27432/critical-issues-in-transportation-for-2024-and-beyond

CHANGES IN GASOLINE CONSUMPTION IN WASHINGTON STATE DUE TO THE 65 M.P.H. SPEED LIMIT. ENERGY POLICY AND PLANNING RESEARCH SERIES

To reduce gasoline consumption and lessen United States dependence on foreign crude oil, Congress in 1974 passed legislation reducing highway speed limits to 55 mph. Total U.S. demand for crude oil did drop in the late 1970s and early 1980s, as did U.S. dependence on foreign supplies. However, by 1986 the price of oil plummeted, demand increased, and the U.S. began to rely on increasing amounts of foreign oil. At the same time, the importance of public policies that encouraged lower oil use has waned. After extensive debate, Congress in 1987 passed legislation that allowed states to raise speed limits on non-urban interstate highways to 65 mph. Most states took advantage of this legislation and raised their highway speed limit. This paper estimates the impact on gasoline demand in Washington state due to raising the speed limit. A short-run econometric model links consumer theory to shifts in behavior that have occurred since the speed limit was increased in May 1987. Results indicate that, between May and December 1987, gasoline demand increased by about 60 million gallons, or about 4% over what demand would have been without the higher speed limit. Based on average prices, Washington consumers spent about $50 million more for gasoline due to the higher speed limit.

  • Corporate Authors:

    Washington State Energy Office

    Olympia, WA  United States 
  • Authors:
    • Lesser, J
    • Weber, J
  • Publication Date: 1989-1

Media Info

  • Features: Appendices; Figures; References; Tables;
  • Pagination: 19 p.

Subject/Index Terms

Filing Info

  • Accession Number: 00601446
  • Record Type: Publication
  • Report/Paper Numbers: WAOENG-89-03/1
  • Files: TRIS
  • Created Date: Nov 30 1990 12:00AM