Carbon Pricing and the Truckload Spot Market

Andrew Balthrop, Justin T. Kistler, Yemisi Bolumole, Alex Scott and Chad W. Autry ()
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Andrew Balthrop: Department of Supply Chain Management, Haslam College of Business, University of Tennessee, Knoxville, TN 37916, USA
Justin T. Kistler: Department of Supply Chain Management, Haslam College of Business, University of Tennessee, Knoxville, TN 37916, USA
Yemisi Bolumole: Department of Supply Chain Management, Haslam College of Business, University of Tennessee, Knoxville, TN 37916, USA
Alex Scott: Department of Supply Chain Management, Haslam College of Business, University of Tennessee, Knoxville, TN 37916, USA
Chad W. Autry: Department of Supply Chain Management, Haslam College of Business, University of Tennessee, Knoxville, TN 37916, USA

Logistics, 2025, vol. 9, issue 3, 1-16

Abstract: Background: Carbon pricing in the form of fuel taxes is an important tool for abating climate change. This study examines the impact and pass-through of fuel taxes in the truckload freight market. Methods: State-level truckload market data, integrated with retail diesel prices, are analyzed using fixed-effects regression modeling. Results: Taxes and fuel costs are not only passed on by diesel retailers to motor carriers; the results reveal the overshifting of diesel taxes from motor carriers to shippers. Conclusions: The findings are consistent with inelastic short-term demand for long-haul carriage, indicating that relatively large price increases will be necessary to reduce diesel consumption in the trucking industry.

Keywords: freight shipping; carbon pricing; fuel taxes; tax overshifting; trucking; sustainability (search for similar items in EconPapers)
JEL-codes: L8 L80 L81 L86 L87 L9 L90 L91 L92 L93 L98 L99 M1 M10 M11 M16 M19 R4 R40 R41 R49 (search for similar items in EconPapers)
Date: 2025
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