The Market Effects of Going Green: Evidence from California's Wholesale Reformulated Gasoline Market

Brown, Jennifer L.
July 2009
Energy Journal;2009, Vol. 30 Issue 3, p115
Academic Journal
This paper analyzes the market changes that occurred in California's refining industry following the 1992 implementation of the California Air Resources Board's Phase II reformulated gasoline regulations. This paper uses monthly panel data to determine the impact that these regulations have had on the disparity between California's finished gasoline rack prices and that in other regions of the country. The findings suggest that large refiner compliance to Phase II increased the rack price of finished gasoline in California as compared with other regions. This relative price increase, which was likely triggered by the increased production costs associated with Phase II, is consistent with similar results found throughout the literature. However, as small refiners were required to comply with these regulations, this analysis finds that the premium paid for finished gasoline in California increased significantly. This additional increase in the rack price differential, along with trends in industry concentration, suggests that Phase II may have disproportionately disadvantaged California's small refiners, causing increased profits and market share for larger competitors.


Related Articles

  • Gas Pricing Is Complex. Payne, Scott // Grand Rapids Business Journal;06/26/2000, Vol. 18 Issue 26, p3 

    Focuses on issues which emerged as a result of increases in gasoline price in Michigan. Call for investigations of possible price gouging and manufactured shortages; Impact of Vice President Al Gore's tiebreaker vote concerning an amendment to the Clean Air Act for use of reformulated gasoline...

  • API and NPRA combine efforts on Clean Air Act requirements.  // Pipeline & Gas Journal;Nov94, Vol. 221 Issue 11, p8 

    Reports on a collaboration between the American Petroleum Institute (API) and the National Petroleum Refiners Association (NPRA) to help companies interested in meeting standards for reformulated gasoline. Clean Air Act amendments.

  • The Fluctuating Price of Gas.  // National Driller;May2012, Vol. 33 Issue 5, p30 

    The article discusses the issues concerning the increasing gas prices worldwide.

  • Gas headed above $3 a gallon by summer.  // Delta Automotive Report;Apr2010, Vol. 16 Issue 11, p9 

    The article reports on the potential 3 dollars increase in the retail prices of gasoline in New York by summer season in 2010.

  • Gas Prices Reach All-Time High.  // Bulverde Standard (Canyon Lake, TX);5/30/2007, Vol. 23 Issue 22, p3 

    The article reports on the increase of gas prices in the U.S. during the first five months of 2007, which is at $3.22 per gallon in May.

  • Tucson gas prices jump 12½¢ in 1 week.  // Inside Tucson Business;2/22/2013, Vol. 22 Issue 39, p4 

    The article reports on the increase of gas prices in Tucson, Arizona by 12.5 cents per gallon within a week in February 2013.

  • If you think a gallon of gas is expensive, check this out. Corson, David // Hospitality Construction;May/Jun2008, Vol. 3 Issue 3, p152 

    The author reflects on the increasing gasoline prices in the U.S. He cites that people in Europe have been paying high gasoline prices for years and the tide has caught up in the U.S. He argues that the sooner the country becomes self sufficient and generates their own energy and stops the...

  • Govt. Firm on Gas Price Hike Despite Outcry.  // India -- West;11/11/2011, Vol. 36 Issue 51, pA35 

    The article reports that the government is firm on its stance on the controversial gasoline price increases despite the protests of activists and opposition parties in India.

  • Area gas prices up over last month.  // Inside Tucson Business;2/15/2013, Vol. 22 Issue 38, p13 

    The article reports on the price of regular unleaded gas has increased by 34 cents while average price of gasoline climbed to $3.23 in Tucson, Arizona.


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics