Cross-border shopping for fuel at the France-Germany border

M. Adam, O. Bonnet, E. Fize, M. Rault, T. Loisel and Lionel Wilner
Additional contact information
M. Adam: INSEE
O. Bonnet: INSEE
E. Fize: PSE-IPP, CAE
M. Rault: ENSAE
T. Loisel: INSEE- CREST

Documents de Travail de l'Insee - INSEE Working Papers from Institut National de la Statistique et des Etudes Economiques

Abstract: This paper exploits the introduction of the German carbon tax in 2021 as well as excise tax rebates on fuel in France and in Germany, consecutive to the 2022 oil crisis, to infer how fuel tax revenue responds to changes in relative prices. Based on French high-frequency transaction-level data issued from individual banking accounts, we find substantial displacement between foreign and domestic consumption. When relative prices increase by 1%, the relative cross-border demand decreases by 7.8%. Moreover, there is no substantial difference in demand response to either carbon or excise taxes.

Keywords: Commodity taxation; Tax coordination; Carbon pricing; Quasi-natural experiment; Fuel tourism; Transaction-level data. (search for similar items in EconPapers)
JEL-codes: H20 H23 H77 R48 (search for similar items in EconPapers)
Date: 2024
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https://www.bnsp.insee.fr/ark:/12148/bc6p08vhq77/f1.pdf Document de travail de la DESE numero 2024-08 (application/pdf)

Related works:
Working Paper: Is Carbon Tax Truly More Salient? Evidence from Fuel Tourism at the France-Germany Border (2024)
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Persistent link: https://EconPapers.repec.org/RePEc:nse:doctra:2024-08

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