New Evidence on Price Effects of Transparency Regulations in European Fuel Markets

Abstract

This paper analyses the impact of transparency regulations on Super 95 and Diesel prices in Austria, France, and Germany to shed new light on the price effects of regulatory measures. To identify the effects of regulation, we use publicly available data from January 2005 to the end of December 2019 and estimate synthetic difference-in-difference models. Overall, we find little evidence of any significant price effects due to transparency regulations. In France, prices did not change significantly. In Austria, transparency regulations had a small but significant positive effect merely on Super 95 prices in the short run. In Germany, the Market Transparency Unit (MTU) had negative but small long-term effects on Diesel prices. Therefore, we conclude that the implemented transparency regulations in all three countries did not result in long-lasting lower prices, contrary to the desired outcome of the policy treatments.