Was the German fuel discount passed on to consumers?
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Authors
In this article, I analyze whether German gasoline stations passed on the gasoline tax reduction to consumers. I use a difference-in-differences approach with France as the control group, as well as data for all countries in the European Union. The German fuel discount was in effect from June to August 2022. As I am the first to use complete French and German high-frequency data for the entire treatment period, I can examine how the pass-through of the tax cut evolved over time, varied for different brands, and in various geographic regions. I find a substantial variance in pass-through rates over time and space. On average, the pass-through of the fuel discount was very high but remained incomplete for all fuel types. The pass-through rates were systematically lower in rural regions and in the south of Germany.
Original language | English |
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Article number | 107843 |
Journal | Energy Economics |
Volume | 138 |
Number of pages | 15 |
ISSN | 0140-9883 |
DOIs | |
Publication status | Published - 10.2024 |
Bibliographical note
Publisher Copyright:
© 2024 The Author
- Pass-through, Gasoline market, Tax reduction, Fuel taxes, Petrol prices
- Economics