Abstract
From 1972 to 1985, there were two periods of substantial increases in energy prices and one period of price decreases. Along with other macroeconomic events and policies, the combined impact has altered the distribution of income and transportation expenditures. Using U.S. Department of Labour statistics, the expenditures by families of different incomes on new and used vehicles and gasoline and total transportation spending can be examined. It was determined that wealthier families continued to purchase new cars; poor families drove less energy efficient autos. Transportation recently consumed more than 50 percent of a poor family's cash income. The greatest beneficiaries of lower energy prices would be the poor.