Excise Tax Policy and Cross-border Purchases of Automotive Fuels

Joze Mencinger ()

ICER Working Papers from ICER - International Centre for Economic Research

Abstract: In a small open country such as Slovenia, drivers can either purchase automotive fuel within the country or abroad. A simple demand model is used to test the proposition that changes in excise tax policy caused the decline of purchases in the country, and to delineate the effects of excise tax policy from the effects of the simultaneously occurring economic crisis. To do that, short- and long-run, and direct- and cross-price elasticities are estimated for the purchase of gasoline and automotive diesel in five regions: Slovenia's four border regions and the interior. For the estimation of "volume of transportation" elasticity, vehicle crossings through road sites with automatic traffic meters are used. The simulations indicate that more than half of the decline in the purchase of automotive fuels in 2009 can be attributed to excise tax policy and less than half to the economic crisis, and that the increase in tax revenues generated by excise tax policy significantly exceeded the decrease in the sellers' earnings.

Keywords: retail trade; taxation; time series model (search for similar items in EconPapers)
JEL-codes: C22 H2 L81 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2010-09
New Economics Papers: this item is included in nep-ene, nep-ind and nep-pub
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.biblioecon.unito.it/biblioservizi/RePEc/icr/wp2010/ICERwp20-10.pdf (application/pdf)

Related works:
Journal Article: Excise Tax Policy and Cross-Border Purchases of Automotive Fuels (2010)
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:icr:wpicer:20-2010

Access Statistics for this paper

More papers in ICER Working Papers from ICER - International Centre for Economic Research Corso Unione Sovietica, 218bis - 10134 Torino - Italy. Contact information at EDIRC.
Bibliographic data for series maintained by Daniele Pennesi ().