Is carbon tax truly more salient? Evidence from fuel tourism at the France-Germany border

Odran Bonnet, Etienne Fize, Tristan Loisel and Lionel Wilner
Additional contact information
Odran Bonnet: Insee
Etienne Fize: Institut des Politiques Publiques, Paris School of Economics
Tristan Loisel: Insee, Crest

No 2024-06, Working Papers from Center for Research in Economics and Statistics

Abstract: This paper exploits the introduction of the German carbon tax in 2021 as well as excise tax rebates on fuel in both France and Germany, consecutive to the 2022 oil crisis, to infer how fuel tourism 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 7.7%. In border areas, the elasticity of tax revenue with respect to foreign prices is as high as 0.5. Moreover, there is no substantial difference in demand response to either carbon or excise tax. Such empirical evidence illustrates the importance of coordinating tax policy within EU.

Keywords: Commodity taxation; Tax coordination; Carbon pricing; Fuel tourism; Transaction-level data. (search for similar items in EconPapers)
JEL-codes: H20 H23 H77 R48 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2024-03-08
New Economics Papers: this item is included in nep-eec, nep-ene, nep-env, nep-eur, nep-pub and nep-tre
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://crest.science/RePEc/wpstorage/2024-06.pdf CREST working paper version (application/pdf)

Related works:
Working Paper: Is Carbon Tax Truly More Salient? Evidence from Fuel Tourism at the France-Germany Border (2024)
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:crs:wpaper:2024-06

Access Statistics for this paper

More papers in Working Papers from Center for Research in Economics and Statistics Contact information at EDIRC.
Bibliographic data for series maintained by Secretariat General () and Murielle Jules Maintainer-Email : murielle.jules@ensae.Fr.