"The single most effective measure" that has brought down motorists' fuel use in Europe, however, is taxation, says Dings.

On average, 60 percent of the price European drivers pay at the pump goes to their governments in taxes.

In Britain, the government takes 75 percent, and raises taxes by 5 percent above inflation every year (though it has forgone this year's rise in view of rocketing oil prices, and the French government has promised tax rebates this year to taxi drivers, truckers, fishermen, and others who depend heavily on gasoline.) On August 8, for example, the price of gas in the US, without taxes, would be $2.17, instead of $2.56; in Britain, it would be $1.97, instead of $6.06.

"There is really good evidence that higher prices reduce traffic," says Stephen Glaister, a professor of transportation at London's Imperial College. "If fuel prices go up 10 percent ... fuel consumed goes down by about 7 percent, as people start to use fuel more efficiently, not accelerating so aggressively and switching to more fuel-efficient cars. It does change people's behavior."

The US authorities, however, "are unwilling to use resource price as part of their strategy" to conserve oil, says Lee Schipper, head of transportation research at the Washington-based World Resources Institute, an environmental think tank.

"The biggest hole in our policy today is fuel taxation," he adds. "Tax increases are something Americans should do but don't know how to do, and I wonder if they will ever be able to.

"Consumers want muscle cars, manufacturers say they make what the consumer wants, and the government panders to both constituencies," Mr. Schipper continues. "It's a vicious cycle."

taxes in France make up about 70 percent of the pump price.

Country Tax % of Price
United Kingdom 76%
France 74%
Germany 73%
Italy 69%
Spain 63%
Japan 57%
Canada 45%
United States 29%