Study shows that a 10% rise in petrol prices caused a 3% drop in fuel use

A study conducted by Paul Burke and Shuhei Nishitateno from the Australian National University (ANU) showed that a 10% rise in petrol price resulted in a 3% reduction in fuel consumption.
Burke and Nishitateno examined how petrol prices in 132 nations between 1995 and 2008 influenced motorists’ decisions to buy fuel-efficient vehicles.
Burke said higher petrol prices could motivate people to buy more efficient vehicles in Australia.
“If petrol is expensive, consumers are less likely to opt for a gas guzzler,” he said in a statement. (February 27, 2013)