this post was submitted on 04 Jun 2024
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Is it possible to calculate how much cheaper fuel would be had the SUV/Pickup truck craze never caught on and most people were still daily driving mid-sized sedans?
Yes, easy. (SUV MPG/car MPG) gives you the multiplier for how much more people are paying on every trip
That only works at the individual level. At macroscale, the change in fuel demand could have market-wide impacts.
It'd imagine it's pretty difficult to estimate since oil is also subject to a supply cartel
Sure, but we're talking about the demand side.
I think they meant who much cheaper fuel would be had the demand not increased thanks to big vehicles
Honestly probably about the same because OPEC.
Take the number of cars on the market by type.
Find fuel consumption delta between SUV/truck and compact/midsize.
Multiply fuel delta by number of SUV/trucks.
Multiply by average number of miles per year.
That's the total fuel consumption delta.
Fuel price is trickier since there are supply side concerns as well.