Carbon pricing pass-through: Evidence from Ontario and Quebec's wholesale gasoline markets
Governments in Ontario and Quebec, two Canadian provinces, have required their fuel distributors to participate in carbon markets and to buy allowances covering their greenhouse gas emissions. The resulting carbon pricing can impose an indirect tax on gasoline retailers through the higher wholesale...
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Veröffentlicht in: | Energy policy 2019-09, Vol.132, p.106-112 |
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description | Governments in Ontario and Quebec, two Canadian provinces, have required their fuel distributors to participate in carbon markets and to buy allowances covering their greenhouse gas emissions. The resulting carbon pricing can impose an indirect tax on gasoline retailers through the higher wholesale price they pay. This paper's goal is to measure carbon pricing pass-throughs in Ontario and Quebec's wholesale gasoline markets. Although carbon pricing pass-throughs are uniform within each province, they are higher in Ontario where over-shifting is observed. Higher (lower) levels of pass-throughs in Ontario (Quebec) might be explained by less (more) competitive wholesale gasoline markets.
•Carbon pricing pass-through is found to be higher in Ontario than in Quebec.•Higher pass-through is linked to less competitive markets.•There is evidence of over-shifting in Ontario.•Carbon pricing pass-through is uniform within each province. |
doi_str_mv | 10.1016/j.enpol.2019.05.026 |
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•Carbon pricing pass-through is found to be higher in Ontario than in Quebec.•Higher pass-through is linked to less competitive markets.•There is evidence of over-shifting in Ontario.•Carbon pricing pass-through is uniform within each province.</description><identifier>ISSN: 0301-4215</identifier><identifier>EISSN: 1873-6777</identifier><identifier>DOI: 10.1016/j.enpol.2019.05.026</identifier><language>eng</language><publisher>Kidlington: Elsevier Ltd</publisher><subject>Carbon ; Carbon pricing ; Distributors ; Energy policy ; Gasoline ; Greenhouse effect ; Greenhouse gases ; Markets ; Over-shifting ; Pass-through ; Price increases ; Pricing ; Taxation ; Wholesale gasoline</subject><ispartof>Energy policy, 2019-09, Vol.132, p.106-112</ispartof><rights>2019 Elsevier Ltd</rights><rights>Copyright Elsevier Science Ltd. Sep 2019</rights><lds50>peer_reviewed</lds50><woscitedreferencessubscribed>false</woscitedreferencessubscribed><citedby>FETCH-LOGICAL-c364t-18e1066b2c02ab12242d3f5ae8cc0abc2343b93bb6c70bb51b728b1f02ae95be3</citedby><cites>FETCH-LOGICAL-c364t-18e1066b2c02ab12242d3f5ae8cc0abc2343b93bb6c70bb51b728b1f02ae95be3</cites></display><links><openurl>$$Topenurl_article</openurl><openurlfulltext>$$Topenurlfull_article</openurlfulltext><thumbnail>$$Tsyndetics_thumb_exl</thumbnail><linktohtml>$$Uhttps://www.sciencedirect.com/science/article/pii/S0301421519303301$$EHTML$$P50$$Gelsevier$$H</linktohtml><link.rule.ids>314,776,780,3537,27843,27901,27902,65534</link.rule.ids></links><search><creatorcontrib>Erutku, Can</creatorcontrib><title>Carbon pricing pass-through: Evidence from Ontario and Quebec's wholesale gasoline markets</title><title>Energy policy</title><description>Governments in Ontario and Quebec, two Canadian provinces, have required their fuel distributors to participate in carbon markets and to buy allowances covering their greenhouse gas emissions. The resulting carbon pricing can impose an indirect tax on gasoline retailers through the higher wholesale price they pay. This paper's goal is to measure carbon pricing pass-throughs in Ontario and Quebec's wholesale gasoline markets. Although carbon pricing pass-throughs are uniform within each province, they are higher in Ontario where over-shifting is observed. Higher (lower) levels of pass-throughs in Ontario (Quebec) might be explained by less (more) competitive wholesale gasoline markets.
•Carbon pricing pass-through is found to be higher in Ontario than in Quebec.•Higher pass-through is linked to less competitive markets.•There is evidence of over-shifting in Ontario.•Carbon pricing pass-through is uniform within each province.</description><subject>Carbon</subject><subject>Carbon pricing</subject><subject>Distributors</subject><subject>Energy policy</subject><subject>Gasoline</subject><subject>Greenhouse effect</subject><subject>Greenhouse gases</subject><subject>Markets</subject><subject>Over-shifting</subject><subject>Pass-through</subject><subject>Price increases</subject><subject>Pricing</subject><subject>Taxation</subject><subject>Wholesale gasoline</subject><issn>0301-4215</issn><issn>1873-6777</issn><fulltext>true</fulltext><rsrctype>article</rsrctype><creationdate>2019</creationdate><recordtype>article</recordtype><sourceid>7TQ</sourceid><recordid>eNp9kMtKAzEUhoMoWKtP4CbgwtWMucxVcCGlXqBQBN24CUnmTJtxmtRkpuLbm1rXrs7m-885_4fQJSUpJbS46VKwW9enjNA6JXlKWHGEJrQqeVKUZXmMJoQTmmSM5qfoLISOEJJVdTZB7zPplbN46402doW3MoRkWHs3rta3eL4zDVgNuPVug5d2kN44LG2DX0ZQoK8D_lq7HoLsAa9kcL2xgDfSf8AQztFJK_sAF39zit4e5q-zp2SxfHye3S8SzYtsSGgFlBSFYpowqShjGWt4m0uotCZSacYzrmquVKFLolROVckqRdtIQ50r4FN0ddi79e5zhDCIzo3expOCsZrVGc95HSl-oLR3IXhoRawcP_0WlIi9RNGJX4liL1GQXESJMXV3SEEssDPgRdBmb6QxHvQgGmf-zf8AIM18hQ</recordid><startdate>201909</startdate><enddate>201909</enddate><creator>Erutku, Can</creator><general>Elsevier Ltd</general><general>Elsevier Science Ltd</general><scope>AAYXX</scope><scope>CITATION</scope><scope>7SP</scope><scope>7TA</scope><scope>7TB</scope><scope>7TQ</scope><scope>8BJ</scope><scope>8FD</scope><scope>DHY</scope><scope>DON</scope><scope>F28</scope><scope>FQK</scope><scope>FR3</scope><scope>H8D</scope><scope>JBE</scope><scope>JG9</scope><scope>KR7</scope><scope>L7M</scope></search><sort><creationdate>201909</creationdate><title>Carbon pricing pass-through: Evidence from Ontario and Quebec's wholesale gasoline markets</title><author>Erutku, Can</author></sort><facets><frbrtype>5</frbrtype><frbrgroupid>cdi_FETCH-LOGICAL-c364t-18e1066b2c02ab12242d3f5ae8cc0abc2343b93bb6c70bb51b728b1f02ae95be3</frbrgroupid><rsrctype>articles</rsrctype><prefilter>articles</prefilter><language>eng</language><creationdate>2019</creationdate><topic>Carbon</topic><topic>Carbon pricing</topic><topic>Distributors</topic><topic>Energy policy</topic><topic>Gasoline</topic><topic>Greenhouse effect</topic><topic>Greenhouse gases</topic><topic>Markets</topic><topic>Over-shifting</topic><topic>Pass-through</topic><topic>Price increases</topic><topic>Pricing</topic><topic>Taxation</topic><topic>Wholesale gasoline</topic><toplevel>peer_reviewed</toplevel><toplevel>online_resources</toplevel><creatorcontrib>Erutku, Can</creatorcontrib><collection>CrossRef</collection><collection>Electronics & Communications Abstracts</collection><collection>Materials Business File</collection><collection>Mechanical & Transportation Engineering Abstracts</collection><collection>PAIS Index</collection><collection>International Bibliography of the Social Sciences (IBSS)</collection><collection>Technology Research Database</collection><collection>PAIS International</collection><collection>PAIS International (Ovid)</collection><collection>ANTE: Abstracts in New Technology & Engineering</collection><collection>International Bibliography of the Social Sciences</collection><collection>Engineering Research Database</collection><collection>Aerospace Database</collection><collection>International Bibliography of the Social Sciences</collection><collection>Materials Research Database</collection><collection>Civil Engineering Abstracts</collection><collection>Advanced Technologies Database with Aerospace</collection><jtitle>Energy policy</jtitle></facets><delivery><delcategory>Remote Search Resource</delcategory><fulltext>fulltext</fulltext></delivery><addata><au>Erutku, Can</au><format>journal</format><genre>article</genre><ristype>JOUR</ristype><atitle>Carbon pricing pass-through: Evidence from Ontario and Quebec's wholesale gasoline markets</atitle><jtitle>Energy policy</jtitle><date>2019-09</date><risdate>2019</risdate><volume>132</volume><spage>106</spage><epage>112</epage><pages>106-112</pages><issn>0301-4215</issn><eissn>1873-6777</eissn><abstract>Governments in Ontario and Quebec, two Canadian provinces, have required their fuel distributors to participate in carbon markets and to buy allowances covering their greenhouse gas emissions. The resulting carbon pricing can impose an indirect tax on gasoline retailers through the higher wholesale price they pay. This paper's goal is to measure carbon pricing pass-throughs in Ontario and Quebec's wholesale gasoline markets. Although carbon pricing pass-throughs are uniform within each province, they are higher in Ontario where over-shifting is observed. Higher (lower) levels of pass-throughs in Ontario (Quebec) might be explained by less (more) competitive wholesale gasoline markets.
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source | PAIS Index; Elsevier ScienceDirect Journals |
subjects | Carbon Carbon pricing Distributors Energy policy Gasoline Greenhouse effect Greenhouse gases Markets Over-shifting Pass-through Price increases Pricing Taxation Wholesale gasoline |
title | Carbon pricing pass-through: Evidence from Ontario and Quebec's wholesale gasoline markets |
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