Why is Gen Y driving less?

After growing consistently for many decades, car use is falling in developed countries (e.g. USA, Australia, Britain). A notable aspect of this decline is the fall-off in driving by young people.

New data from the US Federal Highway Administration (see here and here) shows that although they increased their share of the US population slightly over the period, those aged 21-30 accounted for only 14% of all miles driven in 2009, compared to 21% in 1995. Another study reports that in 2008 only 49% of 17 years olds had driver’s licenses compared to 75% in 1978.

There is now a sharp difference between Gen Y and baby boomers. A typical 58 year old in the US last year drove 11,607 miles, while the average 28 year old drove just 7,011 miles.

Neither the GFC nor the recent escalation of petrol prices fully account for these changes because the decline in driving preceded these events. So what is driving Gen Y to abandon what has traditionally been one of the great rewards of coming-of-age?

The explanation usually advanced is that the internet has enabled electronic communication to substitute for face-to-face contact. As I’ve pointed out before, however, reputable researchers conclude the exact opposite – electronic communication increases the demand for face-to-face contact more than it substitutes for it. Read the rest of this entry »