 Pass-through of temporary fuel tax reductions: Evidence from EuropeChiara Patricia Drolsbach, Maximilian Maurice Gail and Phil-Adrian Klotz Energy Policy, 2023, vol. 183, issue C Abstract: Several European countries have implemented temporary fuel tax reductions in 2022 to relieve the financial burden on their citizens. This paper is the first to provide estimates of the pass-through rates as well as the effect on retail margins for France and Italy. Further, it contributes to the recent literature on the fuel tax reduction in Germany. Using a unique data set containing daily consumer prices at service station chain level for gasoline and diesel, we employ a staggered Difference-in-Differences (DiD) design. Our main results imply that in the aggregate there was a full-shifting of the fuel tax reductions in all three countries. Nevertheless, in an event study design we find that the pass-through rates over time are heterogeneous between the countries and types of fuel. Depending on time, heterogeneous effects imply a full-shifting up to a minor over-shifting of the pass-through rates. These findings also have important implications for the effective design of unconventional fiscal policy as well as for competition policy in the fuel market. Keywords: Fuel prices; Pass-through; Environmental taxes; Staggered diD (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:183:y:2023:i:c:s0301421523004184 DOI: 10.1016/j.enpol.2023.113833 Access Statistics for this article Energy Policy is currently edited by N. France More articles in Energy Policy from Elsevier |
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