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Carbon Pricing and the Truckload Spot Market

Author

Listed:
  • Andrew Balthrop

    (Department of Supply Chain Management, Haslam College of Business, University of Tennessee, Knoxville, TN 37916, USA)

  • Justin T. Kistler

    (Department of Supply Chain Management, Haslam College of Business, University of Tennessee, Knoxville, TN 37916, USA)

  • Yemisi Bolumole

    (Department of Supply Chain Management, Haslam College of Business, University of Tennessee, Knoxville, TN 37916, USA)

  • Alex Scott

    (Department of Supply Chain Management, Haslam College of Business, University of Tennessee, Knoxville, TN 37916, USA)

  • Chad W. Autry

    (Department of Supply Chain Management, Haslam College of Business, University of Tennessee, Knoxville, TN 37916, USA)

Abstract

Background: Carbon pricing in the form of fuel taxes is an important tool for abating climate change. This study examines the impact and pass-through of fuel taxes in the truckload freight market. Methods: State-level truckload market data, integrated with retail diesel prices, are analyzed using fixed-effects regression modeling. Results: Taxes and fuel costs are not only passed on by diesel retailers to motor carriers; the results reveal the overshifting of diesel taxes from motor carriers to shippers. Conclusions: The findings are consistent with inelastic short-term demand for long-haul carriage, indicating that relatively large price increases will be necessary to reduce diesel consumption in the trucking industry.

Suggested Citation

  • Andrew Balthrop & Justin T. Kistler & Yemisi Bolumole & Alex Scott & Chad W. Autry, 2025. "Carbon Pricing and the Truckload Spot Market," Logistics, MDPI, vol. 9(3), pages 1-16, August.
    • Handle: RePEc:gam:jlogis:v:9:y:2025:i:3:p:121-:d:1736259
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    References listed on IDEAS

    as
    1. Lisa M. Ellram & Monique L. Ueltschy Murfield, 2017. "Environmental Sustainability in Freight Transportation: A Systematic Literature Review and Agenda for Future Research," Transportation Journal, John Wiley & Sons, vol. 56(3), pages 263-298, July.
    2. Nikita Osintsev & Aleksandr Rakhmangulov, 2025. "Supply Chain Sustainability Drivers: Identification and Multi-Criteria Assessment," Logistics, MDPI, vol. 9(1), pages 1-45, February.
    3. Yuki Kinoshita & Takaki Nagao & Hiromasa Ijuin & Keisuke Nagasawa & Tetsuo Yamada & Surendra M. Gupta, 2023. "Utilization of Free Trade Agreements to Minimize Costs and Carbon Emissions in the Global Supply Chain for Sustainable Logistics," Logistics, MDPI, vol. 7(2), pages 1-21, June.
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