Gasoline Price Differences: Taxes, Pollution Regulations, Mergers, Market Power, and Market Conditions

Hayley Chouinard () and Jeffrey Perloff

No 25049, CUDARE Working Papers from University of California, Berkeley, Department of Agricultural and Resource Economics

Abstract: Retail and wholesale gasoline prices vary over time and across geographic locations due to differences in government policies and other factors that affect demand, costs, and market power. We use a two-equation, reduced-form model to determine the relative importance of these various factors. An increase in the price of crude oil has been virtually the only major factor contributing to a general rise in prices over the last couple of decades. Tax variations and mergers contribute substantially more to geographic price differentials than do price discrimination, cost factors, or pollution controls.

Keywords: Demand and Price Analysis; Environmental Economics and Policy; Industrial Organization (search for similar items in EconPapers)
Pages: 36
Date: 2002
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Citations: View citations in EconPapers (9)

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Related works:
Journal Article: Gasoline Price Differences: Taxes, Pollution Regulations, Mergers, Market Power, and Market Conditions (2007)
Working Paper: Gasoline Price Differences: Taxes, Pollution Regulations, Mergers, Market Power, and Market Conditions (2002)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:ucbecw:25049

DOI: 10.22004/ag.econ.25049

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