Exploring cross-border energy policies and their impact on gasoline prices in Friuli Venezia Giulia, Italy

Angela S. Bergantino, Mario Intini, Younes Nademi and Federica Nuzzo

Energy Economics, 2025, vol. 144, issue C

Abstract: This study explores the interplay between regional energy policies and cross-border economic activities in the Friuli Venezia Giulia (FVG) region of Italy, with a particular focus on their impact on gasoline prices and the issue of fuel tourism. By analyzing weekly gasoline data through a Markov switching model, we investigate the dynamics of gasoline pricing strategies in response to regional discount policies designed to curtail cross-border fuel purchases. Our findings reveal that while these policies variably affect gasoline prices across different areas of the region, they generally result in higher net gasoline prices, especially in environments characterized by low-price and high-volatility. This research enhances our understanding of how local economic measures influence cross-border behaviors and evaluates the effectiveness of regional policies in stabilizing markets and mitigating economic leakages due to fuel tourism. Additionally, it underscores the necessity for a tailored policy approach that considers the unique economic dynamics of border regions.

Keywords: Gasoline prices; Gasoline station strategies; Regional energy policies; Fuel tourism; Markov switching model (search for similar items in EconPapers)
JEL-codes: C24 D40 L51 Q41 Q48 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:144:y:2025:i:c:s0140988325001902

DOI: 10.1016/j.eneco.2025.108366

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