Pass-through effects of a temporary tax rebate on German fuel prices

Hans-Jörg Schmerer and Jaqueline Hansen

Economics Letters, 2023, vol. 227, issue C

Abstract: This paper studies the impact of a recent tax rebate by the German government. In an attempt of reducing the economic burden of soaring energy prices, Germany lowered the tax on fuel by up to 35.9 cents for a limited period of time. Based on a diff-in-diff approach, we find a pass-through on consumer prices of up to 105 percent.

Keywords: Tax rebate; Gas prices; Energy prices; Pass through; Diff-in-diff (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:227:y:2023:i:c:s0165176523001295

DOI: 10.1016/j.econlet.2023.111104

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