Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/300810 
Year of Publication: 
2024
Series/Report no.: 
DIW Discussion Papers No. 2086
Publisher: 
Deutsches Institut für Wirtschaftsforschung (DIW), Berlin
Abstract: 
This paper analyses the pass-through rates and their determinants of the temporary German fuel discount in 2022 at its start and its termination. Based on a unique dataset of fuel station characteristics and prices, we employ a Regression Discontinuity in Time (RDiT) methodology to estimate heterogeneous pass-through rates. Our main contribution is to identify the impact of horizontal and vertical market structures on the extent to which taxes are passed on to consumers. While competitive pressure is positively associated with the response of prices to tax changes, we estimate lower pass-through predominantly for more isolated stations with fewer competitors. Furthermore, our results indicate that independence from upstream markets is accompanied by a reduced pass-through of tax changes suggesting the existence of double marginalization.
Subjects: 
gasoline prices
local competition
tax pass-through
regression discontinuity intime
JEL: 
Q48
H22
L13
Document Type: 
Working Paper

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