Hamilton: Why do gasoline prices differ across U.S. states?

Michael Giberson

James Hamilton, at Econbrowser, examines the question,”Why do gasoline prices differ across U.S. states?

The short answer is: state gasoline taxes (clearly), regional fuel requirements (probably), and access to relatively inexpensive crude oil supplies. Any remaining price differences are probably just general state differences in the cost of doing business.

But go read Hamilton’s explanation which includes some colorful maps (and draws on a similar assessment at Political Calculations).

 

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