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An Examination Of The Effects Of Environmental Regulations On Retail Gasoline Price Seasonality

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  • Michael C. Davis

Abstract

Stricter environmental standards on gasoline have had impacts on the prices of gasoline including the seasonality of gasoline prices. Using both national data and individual station data, the paper tests for a possible explanation for this increase. Three theories are tested: that gasoline seasonality increases due to higher costs, due to greater market power because of segmented markets, or due to greater asymmetry because of greater inattention on the part of customers. The results suggest that gasoline price seasonality has increased both due to higher costs and greater market power with mixed results on the inattention of consumers.(JEL Q41, Q53, Q58).

Suggested Citation

  • Michael C. Davis, 2021. "An Examination Of The Effects Of Environmental Regulations On Retail Gasoline Price Seasonality," Contemporary Economic Policy, Western Economic Association International, vol. 39(1), pages 178-193, January.
    • Handle: RePEc:bla:coecpo:v:39:y:2021:i:1:p:178-193
    DOI: 10.1111/coep.12491
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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