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Pass-through effects of a temporary tax rebate on German fuel prices

Author

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  • Schmerer, Hans-Jörg
  • Hansen, Jaqueline

Abstract

This paper studies the impact of a recent tax rebate by the German government. In an attempt of reducing the economic burden of soaring energy prices, Germany lowered the tax on fuel by up to 35.9 cents for a limited period of time. Based on a diff-in-diff approach, we find a pass-through on consumer prices of up to 105 percent.

Suggested Citation

  • Schmerer, Hans-Jörg & Hansen, Jaqueline, 2023. "Pass-through effects of a temporary tax rebate on German fuel prices," Economics Letters, Elsevier, vol. 227(C).
    • Handle: RePEc:eee:ecolet:v:227:y:2023:i:c:s0165176523001295
    DOI: 10.1016/j.econlet.2023.111104
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    Cited by:

    1. Tsanko, Ilona, 2024. "Consumers' response to price increases: Evidence from gasoline markets," ZEW Discussion Papers 24-020, ZEW - Leibniz Centre for European Economic Research.
    2. Drolsbach, Chiara Patricia & Gail, Maximilian Maurice & Klotz, Phil-Adrian, 2023. "Pass-through of temporary fuel tax reductions: Evidence from Europe," Energy Policy, Elsevier, vol. 183(C).

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