Since 1986, car fuel consumption in Spain has been subject to the Special Hydrocarbons Tax and the Value Added Tax. In addition, since 2002 regional governments have been able to apply a regional excise duty on hydrocarbons. This article analyses the impact that such a regional tax
has on the retailer's diesel price at the border of the province of Lugo (in the region of Galicia) and the province of Leon (in the region of Castile Leon) (only the former region has the regional tax). Evidence shows that variations in the price of diesel at the border of Lugo are of the
same sign but of lower intensity than at the border of Leon (the price–price elasticity is 0.8060). These results suggest that service stations located in regions with higher excise duties use their price policy to lessen the negative effects generated for fuel tourism.
No Reference information available - sign in for access.
No Citation information available - sign in for access.
No Supplementary Data.
No Article Media
fuel tourism diesel;
Document Type: Research Article
Department of Applied Economics II,Universidad Rey Juan Carlos, Madrid, Spain
Department of Economics and Statistics,Universidad de León, León, Spain
Department of Economics,Universidad de Oviedo, Oviedo, Spain
Publication date: 2013-02-01
More about this publication?