Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/334170 
Year of Publication: 
2025
Series/Report no.: 
DIW Data Documentation No. 116
Publisher: 
Deutsches Institut für Wirtschaftsforschung (DIW), Berlin
Abstract: 
This paper analyses determinants of pass-through for Germany's 2022 temporary fuel discount at its implementation and subsequent termination. Based on a unique dataset of fuel station characteristics and prices, we employ a two-stage Regression Discontinuity in Time (RDiT) methodology to estimate spatial pass-through variation. Our findings indicate that horizontal and vertical market structures exert an asymmetric influence on tax pass-through. Competitive pressure enhances price responsiveness to tax reductions, whereas we find the opposite pattern for the tax increase. Furthermore, independence from upstream markets is associated with lower tax pass-through, indicating the presence of double marginalization.
Subjects: 
gasoline prices
fuel taxation
spatial competition
tax pass-through
regression discontinuity in time
Persistent Identifier of the first edition: 
Document Type: 
Research Report

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