The effect of the Colonial Pipeline shutdown on gasoline prices

Tsvetan Tsvetanov and Srishti Slaria

Economics Letters, 2021, vol. 209, issue C

Abstract: On May 7, 2021, the Colonial Pipeline system was shut down for 6 days in response to a cyberattack. Using daily regular gasoline price data at the city level and employing a difference-in-differences approach to address potential demand-side confounding factors, we find that the shutdown led to a 4 cents-per-gallon increase in average gasoline prices in affected areas, with the estimated impact varying across locations based on their access to alternative means of fuel supply. Although the overall effect was initially slow, it persisted even after the reopening of the pipeline.

Keywords: Gasoline prices; Supply disruption; Colonial Pipeline (search for similar items in EconPapers)
JEL-codes: H12 Q41 Q48 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:209:y:2021:i:c:s0165176521003992

DOI: 10.1016/j.econlet.2021.110122

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