Gasoline content regulation as a trade barrier: do boutique fuels discourage fuel imports?
This paper examines the impact of Clean Air Act Amendments of 1990 (CAAA) environmental regulations on U.S. motor gasoline import patterns. Following the damage to U.S. petroleum refining infrastructure from hurricanes Katrina and Rita, the federal government provided temporary relief for several weeks from so-called boutique fuel specifications designed to improve air quality in certain regions of the country. These temporary waivers increased marketers’ ability to sell gasoline originally destined for specific regional markets into a greater number of markets. We hypothesize that these same waivers also encouraged gasoline imports more than increased prices would have alone. We test our hypothesis using two analyses. The first consists of a simple transfer function analysis designed to separate price effects (and thus effects of refinery closures) from the effects of regulatory relief. The second analysis consists of a natural experiment comparing the primary recipient of regulatory relief—the Gulf Coast gasoline market— to the rest of the United States. Both analyses suggest that the CAAA-related specifications prevent a substantial amount of gasoline imports from entering the United States under normal circumstances.
|Date of creation:||2007|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.dallasfed.org/|
More information through EDIRC
|Order Information:|| Email: |
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Brown, Jennifer & Hastings, Justine & Mansur, Erin T. & Villas-Boas, Sofia B., 2008.
"Reformulating competition Gasoline content regulation and wholesale gasoline prices,"
Journal of Environmental Economics and Management,
Elsevier, vol. 55(1), pages 1-19, January.
- Brown, Jennifer & Hastings, Justine & Mansur, Erin T. & Villas-Boas, Sofia B, 2007. "Reformulating Competition? Gasoline Content Regulation and Wholesale Gasoline Prices," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt9v59q1ck, Department of Agricultural & Resource Economics, UC Berkeley.
- Brown, Jennifer & Hastings, Justine & Mansur, Erin T. & Villas-Boas, Sofia B, 2006. "Reformulating competition? Gasoline content regulation and wholesale gasoline prices," CUDARE Working Paper Series 1010R, University of California at Berkeley, Department of Agricultural and Resource Economics and Policy, revised Jan 2007.
- Ming-yuan Chen, 2005. "Technology adoption in response to changes in market conditions: Evidence from the US petroleum refining industry," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 14(8), pages 735-756.
- Chen, Ming-Yuan, 2002. "Survival duration of plants: Evidence from the US petroleum refining industry," International Journal of Industrial Organization, Elsevier, vol. 20(4), pages 517-555, April.
- Erich J. Muehlegger, 2004.
"Gasoline Price Spikes and Regional Gasoline Content Regulations - A Structural Approach,"
0421, Massachusetts Institute of Technology, Center for Energy and Environmental Policy Research.
- Muehlegger, Erich, 2006. "Gasoline Price Spikes and Regional Gasoline Content Regulation: A Structural Approach," Working Paper Series rwp06-015, Harvard University, John F. Kennedy School of Government.
- Serena Ng & Pierre Perron, 2001.
"LAG Length Selection and the Construction of Unit Root Tests with Good Size and Power,"
Econometric Society, vol. 69(6), pages 1519-1554, November.
- Serena Ng & Pierre Perron, 1997. "Lag Length Selection and the Construction of Unit Root Tests with Good Size and Power," Boston College Working Papers in Economics 369, Boston College Department of Economics, revised 01 Sep 2000.
When requesting a correction, please mention this item's handle: RePEc:fip:feddwp:0709. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Amy Chapman)
If references are entirely missing, you can add them using this form.