Price dynamics in European petroleum markets

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...

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Bibliographic Details
Published in:Energy economics 2009, Vol.31 (1), p.99-108
Main Authors: Wlazlowski, Szymon, Giulietti, Monica, Binner, Jane, Milas, Costas
Format: Article
Language:English
Subjects:
Applied sciences
Asymmetry
Cross-national analysis
Crude oil
Crude oil prices
Differentials
Dynamic tests
Dynamics
Economic data
Economic models
Economics
Energy
Energy economics
Error correction models
Europe
Exact sciences and technology
Fossil fuels and derived products
Fuel
General, economic and professional studies
Markets
Non-linear error correction models
Non-linear models
Oil
Oil market
Oil markets
Oil markets Non-linear error correction models Price transmission Europe
Petroleum
Petroleum industry
Price differentiation
Price transmission
Prices
Spillovers
Studies
Time series
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Summary: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.
ISSN:0140-9883
1873-6181
DOI:10.1016/j.eneco.2008.08.009