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The Impact of Petroleum Product Prices on State Economic Conditions: An Analysis of the Economic Base


Author Info

  • Decker, Christopher S.

    (U NE, Omaha)

  • Wohar, Mark E.

    (U NE, Omaha)


Recent energy price increases have revitalized interest in energy's impact on state economies. Moreover, lackluster economic growth in most states prompted some to suspend gas tax collections to stimulate economic activity. Given such interest, surprisingly few studies have quantified the effect energy has on state economies. Two questions are thus addressed here: 1) what is the impact of higher energy prices on state employment, and 2) what is the impact of a gas tax suspension. We find that the impact of increased petroleum-based energy prices on employment growth is small, calling into question the efficacy of a gas tax suspension.

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Bibliographic Info

Article provided by Southern Regional Science Association in its journal Review of Regional Studies.

Volume (Year): 35 (2005)
Issue (Month): 2 ()
Pages: 161-86

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Handle: RePEc:rre:publsh:v:35:y:2005:i:2:p:161-86

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Keywords: Energy; Gas; Petroleum; Tax;

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