Tuesday, April 7, 2009

Cost of driving in the U.S.

While actual costs vary from place to place and depending on fuel prices, after some analysis I’ve arrived at some staggering conclusions. When multiplying the average cost per mile of $1.28 (by default assuming current prices of about $2.25/gal) by 240 trillion yearly vehicle miles traveled (VMT), which is a rough estimate of the current total, and America’s total yearly cost of driving is $3.7 trillion , or a whopping 25% of our GDP (the actual yearly figures are likely in the range of $3.25-4 trillion). Just pause and think about that for a second: one out of every four dollars in America is spent on driving. Should Americans have to spend that much on transportation? What does this mean for lower income Americans? Also, a 10% reduction in driving would save up to 400 billion per year, and a 25% reduction would save almost one trillion per year. Twenty-first Century Urban Solutions.

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