Cross-border shopping of alcohol – What is the effect on tax revenue and sales and which products are most affected?

Richard Friberg (), Frode Steen and Simen Ulsaker
Additional contact information
Richard Friberg: Dept. of Economics, Stockholm School of Economics, Postal: Stockholm School of Economics, Department of Economics, Universitetsvägen 10A, 106 91 Stockholm, Sweden, http://www.richardfriberg.se/

No 12/2024, Discussion Paper Series in Economics from Norwegian School of Economics, Department of Economics

Abstract: We use COVID-19 border closings and comprehensive store-level data on Norwegian alcohol sales to quantify the effect cross-border shopping of alcohol on sales volume and commodity tax revenue. Effects are large, for instance we estimate that commodity tax revenue for wine is about 20% lower because of cross-border shopping. Using product level data we establish that effects come from across all products rather than just a few, but effects are especially marked for bag-in-box wines. Neither availability of the exact same product in Sweden nor idiosyncratic product-level price difference with respect to Sweden has any marked effect on the impact of cross-border shopping on sales.

Keywords: Cross-border shopping; Commodity taxes; Excise taxes; Tax Competition (search for similar items in EconPapers)
JEL-codes: D62 F15 H20 (search for similar items in EconPapers)
Pages: 44 pages
Date: 2024-07-04
New Economics Papers: this item is included in nep-pbe and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://openaccess.nhh.no/nhh-xmlui/handle/11250/3138471 Full text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hhs:nhheco:2024_012

Ordering information: This working paper can be ordered from

Access Statistics for this paper

More papers in Discussion Paper Series in Economics from Norwegian School of Economics, Department of Economics NHH, Department of Economics, Helleveien 30, N-5045 Bergen, Norway. Contact information at EDIRC.
Bibliographic data for series maintained by Synne Stormoen ().