Was the German fuel discount passed on to consumers?
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In: Energy Economics, Vol. 138, 107843, 10.2024.
Research output: Journal contributions › Journal articles › Research › peer-review
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TY - JOUR
T1 - Was the German fuel discount passed on to consumers?
AU - Kahl, Mats Petter
N1 - Publisher Copyright: © 2024 The Author
PY - 2024/8/24
Y1 - 2024/8/24
N2 - 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.
AB - 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.
KW - Pass-through
KW - Gasoline market
KW - Tax reduction
KW - Fuel taxes
KW - Petrol prices
KW - Economics
UR - http://www.scopus.com/inward/record.url?scp=85202062804&partnerID=8YFLogxK
U2 - 10.1016/j.eneco.2024.107843
DO - 10.1016/j.eneco.2024.107843
M3 - Journal articles
VL - 138
JO - Energy Economics
JF - Energy Economics
SN - 0140-9883
M1 - 107843
ER -