Diesel price convergence and mineral oil taxation in Europe

Axel Dreher and Tim Krieger

No 07-182, KOF Working papers from KOF Swiss Economic Institute, ETH Zurich

Abstract: We empirically analyze convergence of European producer and consumer prices for diesel fuel and investigate the role of excise taxation. By comparing the speed of convergence of prices and taxes we find a surprisingly fast speed of convergence for consumer prices. While this can in part be explained by fuel tourism, the main driving force is producer price dynamics. Tax convergence contributes weakly to price convergence, but the overall effect is to slow down consumer relative to producer price convergence.

Keywords: Price convergence; Diesel; International taxation; European integration; Panel unit roots (search for similar items in EconPapers)
Pages: 19 pages
Date: 2007-01
New Economics Papers: this item is included in nep-eec and nep-ene
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Citations: View citations in EconPapers (6)

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http://dx.doi.org/10.3929/ethz-a-005502892 (application/pdf)

Related works:
Journal Article: Diesel price convergence and mineral oil taxation in Europe (2010)
Working Paper: Diesel price convergence and mineral oil taxation in Europe (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:kof:wpskof:07-182

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