Price dynamics in European petroleum markets

Szymon Wlazlowski, Monica Giulietti*, Jane Binner, Costas Milas

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

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 languageEnglish
Pages (from-to)99-108
Number of pages10
JournalEnergy Economics
Volume31
Issue number1
Early online date30 Aug 2008
DOIs
Publication statusPublished - Jan 2009

Keywords

  • Europe
  • non-linear error correction models
  • oil markets
  • price transmission

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