Since 1999, gasoline prices in California, Illinois and Wisconsin have spiked occasionally well above gasoline prices in nearby states. In May and June 2000, for example, gasoline prices in Chicago rose twenty eight cents per gallon to $2.13, while prices nationally rose only nine to $1.73. Several qualitative studies identify unique gasoline formulations in California, Illinois and Wisconsin a...

Gasoline “divorcement” regulations restrict the integration of gasoline refiners and retailers. Theoretically, vertical integration can harm competition, making it possible that divorcement policies could increase welfare; alternatively, these policies may reduce welfare by sacrificing efficiencies. This paper attempts to differentiate between these possibilities by estimating a reduced form eq...

The refining industry in the US is a leading producer of sulfur dioxide and nitrogen oxide emissions. As a result of the Clean Air Act, it has been subject to a host of environmental regulations that prescribes the production processes firms can employ and limits their emissions based on the permits they hold. On the other hand, in some regions, refiners have been forced to produce higher quali...

The Environmental Protection Agency introduced Reformulated Gasoline (RFG) requirements as a measure to reduce emissions from gasoline-powered vehicles in certain geographic areas. The EPA developed models for predicting emissions as a function of gasoline properties and established statutory baseline emissions from a representative set of gasolines. RFG is a key driving force for investment in...

This paper studies the degree to which gasoline price spikes in California, Illinois and Wisconsin over 1995 to 2001 can be explained by regulatory differentiation gasoline sold in California, Illinois and Wisconsin is chemically different than gasoline sold in other locations as a result of local regulation supplementary to the Clean Air Act Amendments of 1990. I specify a structural model bas...

This review attempts to provide an overview of the interconnected industrial changes associated with compliance with the exhaust emission standards of the Clean Air Act of 1970. To understand the complex nature of air pollution problems, Federal legislation, and compliance with this legislation requires an understanding of automotive technology, petroleum refining, atmospheric chemistry and phy...