Fatal Policy or Market Adaptation?

Sammanfattning: This thesis investigates the effects of the implementation of a new policy requiring petrol stations in Sweden to include an alternative fuel in their product range. We extend the research to investigate the negative consumer effects following the law, namely effects on fuel price and fuel sales volume. Using data from a unique computed dataset we conduct a standard Poisson regression as well as an OLS, using a difference-in-difference approach, we find that there has been a decrease in the number of stations in the years following the law's introduction that is not attributable to changes in market's demographic parameters. However find no negative consumer effects that follow the decrease in number of stations.