Abstract
Stricter environmental standards on gasoline have had impacts on the prices of gasoline including the seasonality of gasoline prices. Using both national data and individual station data, the paper tests for a possible explanation for this increase. Three theories are tested: that gasoline seasonality increases due to higher costs, due to greater market power because of segmented markets, or due to greater asymmetry because of greater inattention on the part of customers. The results suggest that gasoline price seasonality has increased both due to higher costs and greater market power with mixed results on the inattention of consumers.(JEL Q41, Q53, Q58).
Recommended Citation
Davis, M. C. (2021). An Examination of the Effects of Environmental Regulations on Retail Gasoline Price Seasonality. Contemporary Economic Policy, 39(1), pp. 178-193. Western Economic Association International.
The definitive version is available at https://doi.org/10.1111/coep.12491
Department(s)
Economics
International Standard Serial Number (ISSN)
1074-3529; 1465-7287
Document Type
Article - Journal
Document Version
Final Version
File Type
text
Language(s)
English
Rights
© 2020 Western Economic Association International, All rights reserved.
Publication Date
01 Jan 2021
Comments
This research is partially funded by a grant from the University of Missouri Research Board.