Estimating Pass-Through Rates for the 2022 Tax Reduction on Fuel Prices in Germany

Jonas Dovern, Johannes Frank, Alexander Glas, Lena Müller and Daniel Perico Ortiz

No 9963, CESifo Working Paper Series from CESifo

Abstract: We analyze the effectiveness of the German tax reduction on fuel prices (‘Tankrabatt’) that was introduced for three months, starting on 1 June 2022. We use the synthetic difference-in-differences estimator to compare actual retail prices of gasoline and diesel to those in a counterfactual situation without the tax reduction. We find that the tax reduction has been completely passed on to consumers for most of the period. A notable exception is that pass-through rates for diesel started to decline in August while the tax reduction was still in place. Our results are robust to different approaches of constructing the synthetic control group.

Keywords: fuel; gasoline; diesel; taxes; synthetic control group (search for similar items in EconPapers)
JEL-codes: C22 E31 E65 H22 Q41 (search for similar items in EconPapers)
Date: 2022
New Economics Papers: this item is included in nep-eec and nep-ene
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Journal Article: Estimating pass-through rates for the 2022 tax reduction on fuel prices in Germany (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_9963

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