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Price regulation and relative price convergence: Evidence from the retail gasoline market in Canada

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  • Suvankulov, Farrukh
  • Lau, Marco Chi Keung
  • Ogucu, Fatma

Abstract

This paper explores price regulation and relative price convergence in the Canadian retail gasoline market. We use monthly data (2000–2010) on retail gasoline prices in 60 Canadian cities to investigate (i) whether the retail gasoline market in Canada has experienced a relative price convergence to the mean, which is expected, given the increased economic integration across Canadian provinces; and (ii) whether the introduction of price regulation mechanisms in New Brunswick and Nova Scotia in July 2006 had any impact on the price convergence in these provinces.

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Bibliographic Info

Article provided by Elsevier in its journal Energy Policy.

Volume (Year): 40 (2012)
Issue (Month): C ()
Pages: 325-334

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Handle: RePEc:eee:enepol:v:40:y:2012:i:c:p:325-334

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Web page: http://www.elsevier.com/locate/enpol

Related research

Keywords: Gasoline prices; Price convergence; Law of one price;

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Cited by:
  1. Wittmann, Nadine, 2014. "Regulating gasoline retail markets: The case of Germany," Economics Discussion Papers 2014-17, Kiel Institute for the World Economy.
  2. Holmes, Mark J. & Otero, Jesús & Panagiotidis, Theodore, 2013. "On the dynamics of gasoline market integration in the United States: Evidence from a pair-wise approach," Energy Economics, Elsevier, vol. 36(C), pages 503-510.

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