EconPapers    
Economics at your fingertips  
 

Formative Experiences and the Price of Gasoline

Christopher Severen and Arthur Van Benthem

No 13859, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: An individual's initial experiences with a common good, such as gasoline, can shape their behavior for decades. We first show that the 1979 oil crisis had a persistent negative effect on the likelihood that individuals that came of driving age during this time drove to work in the year 2000 (i.e., in their mid 30s). The effect is stronger for those with lower incomes and those in cities. Combining data on many cohorts, we then show that large increases in gasoline prices between the ages of 15 and 18 significantly reduce both (i) the likelihood of driving a private automobile to work and (ii) total annual vehicle miles traveled later in life, while also increasing public transit use. Differences in driver license age requirements generate additional variation in the formative window. These effects cannot be explained by contemporaneous income and do not appear to be only due to increased costs from delayed driving skill acquisition. Instead, they seem to reflect the formation of preferences for driving or persistent changes in the perceived costs of driving.

Keywords: driving behavior; formative experiences; gasoline price; path dependence; preference persistence (search for similar items in EconPapers)
JEL-codes: D12 D90 L91 Q41 R41 (search for similar items in EconPapers)
Date: 2019-07
New Economics Papers: this item is included in nep-ene and nep-tre
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.cepr.org/active/publications/discussion_papers/dp.php?dpno=13859 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
Working Paper: Formative Experiences and the Price of Gasoline (2019) Downloads
Working Paper: Formative Experiences and the Price of Gasoline (2019) Downloads
Working Paper: Formative Experiences and the Price of Gasoline (2019) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:13859

Ordering information: This working paper can be ordered from
http://www.cepr.org/ ... rs/dp.php?dpno=13859

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().

 
Page updated 2020-11-21
Handle: RePEc:cpr:ceprdp:13859