@TechReport{iza:izadps:dp9932,
            	author={Ganapati, Sharat and Shapiro, Joseph S. and Walker, Reed},
            	title={Energy Prices, Pass-Through, and Incidence in U.S. Manufacturing},
            	year={2016},
	month={May},
            	institution={Institute of Labor Economics (IZA)},
            	address={Bonn},
            	type={IZA Discussion Paper},
            	number={9932},
            	url={https://www.iza.org/publications/dp9932},
	abstract={This paper studies how increases in energy input costs for production are split between consumers and producers via changes in product prices (i.e., pass-through). We show that in markets characterized by imperfect competition, marginal cost pass-through, a demand elasticity, and a price-cost markup are sufficient to characterize the relative change in welfare between producers and consumers due to a change in input costs. We find that increases in energy prices lead to higher plant-level marginal costs and output prices but lower markups. This suggests that marginal cost pass-through is incomplete, with estimates centered around 0.7. Our confidence intervals reject both zero pass-through and complete pass-through. We find heterogeneous incidence of changes in input prices across industries, with consumers bearing a smaller share of the burden than standards methods suggest.},
	keywords={energy prices;incidence;environmental taxation},
            }