Abstract
This paper analyses horizontal and vertical price dynamics in the EU petroleum markets. The results indicate that the cross-country price differentials have significant impact on the local price adjustments. We investigate the cross-national price spill-overs and find that the extent of the welfare transfer due to asymmetric price transmission, when analysed in a cross-country setting, is less pronounced than claimed in previous contributions in this area. We also find empirical evidence, although indirect, for the politically charged concept of "fuel tourism", using a pan-European cross-product time series dataset.
Original language | English |
---|---|
Pages (from-to) | 99-108 |
Number of pages | 10 |
Journal | Energy Economics |
Volume | 31 |
Issue number | 1 |
Early online date | 30 Aug 2008 |
DOIs | |
Publication status | Published - Jan 2009 |
Keywords
- Europe
- non-linear error correction models
- oil markets
- price transmission