Other critical factors in European demand are the higher population density, tighter city streets, less of a "cowboy psyche" whereby big trucks are socially preferred, greater availability of mass transit for short AND long-distance trips, more of a green consciousness, etc. I'm not sure how much of Europe's different driving habits are due to the former, and how much is due to higher prices/taxes, but my opinion is that the former factors are more significant than price. There have been periods in the past few decades when gasoline/diesel price just wasn't a very significant factor, and the European driving habits still differed in the same ways from America--I think this suggests that the key reason is cultural/geographic, and not price...