THE EFFECT OF FUEL PRICE INCREASE ON CAR USAGE IN FINLAND IN MARCH-AUGUST 2000.

Finnra, together with Statistics Finland, has conducted a questionnaire survey on the effects of fuel price increase on the car usage and a possible switch to public transport or pedestrian and bicycle traffic. The survey was made in September-October covering the period between March -August 2000. In reaction to the latest fuel price increase, nearly 50% of the car drivers' reduced their car usage, at least to some degree. Short journeys in off-duty hours, and leisure time errands experienced the greatest cut-backs on car usage. One tenth of the car drivers reported a switch to mass transportation on some journeys, and more than one fourth had reverted to pedestrian or bicycle traffic on short distances. Approximately one third of the car drivers had increased the efficient car usage by combining trips, and 15 percent had tried car pooling. Public transport was chosen especially by under 25-year olds and those over 55. It was also chosen by slightly more women than men, people of low income levels, and people living in and around the capital city area. This shows that mass transportation was chosen where there were good possibilities of doing so. The most persistent car users were people in the age bracket 45-54. Young people, singles and single-parents switched to pedestrian and bicycle traffic, as well as people with low income levels and those living in Mid- and Northern Finland. People living in Western and Northern Finland, and families with children, combined trips more. Car pooling was favoured especially by young people. Among those who had not diminished their car usage because of the latest fuel price increases, a majority estimated that they would do so if the petrol price would be raised to FIM10 per litre and the diesel fuel to FIM 8-10 per litre. The effect of the fuel price increase on the passenger car traffic could be observed on public roads in a reduced traffic growth, even stagnation over the summer months when the fuel prices were at their highest. The effects on the total passenger car kilometres on public roads are estimated to be around 2-3 percent during the time span surveyed. However, the effects in urban areas are more pronounced, because the shorter trips of those regions experienced the most reductions. From the environmental point of view, the changes in car usage because of the fuel price increase, are positive, since the majority of reduced car usage occurred in urban areas, where the environmental adversities caused by traffic are the greatest. Proportionately most of the emissions by traffic, are created by short car trips. In urban areas, the micro particles of traffic emissions are a considerable health risk. Since the type of car usage that causes greatest damage, has diminished, this means that the fuel price increase has had a favourable effect on the traffic environment.