IDEAS home Printed from https://ideas.repec.org/a/eee/eneeco/v38y2013icp12-18.html
   My bibliography  Save this article

Evaluating a seasonal fuel tax in a mass tourism destination: A case study for the Balearic Islands

Author

Listed:
  • Bakhat, Mohcine
  • Rosselló, Jaume

Abstract

This paper estimates the monthly aggregate demand for diesel oil and gasoline in a mass tourism region, characterized for a high level of seasonality. Using time series models, price elasticities are estimated with special emphasis in evaluating differences between seasons in order to assess the consequences of a fuel tax applied exclusively during the high season. Using the case study of the Balearic Islands (Spain) from January-1999 to December-2010 results from a partial adjustment model show a relatively low price-elasticity, evidencing how the internalizing mechanism that could be argued for introducing the tax in order to reduce transport externalities does not work. Additionally no statistical differences have been found between seasons for both fuels invalidating the argument that tourism activity reacts differently to host activity.

Suggested Citation

  • Bakhat, Mohcine & Rosselló, Jaume, 2013. "Evaluating a seasonal fuel tax in a mass tourism destination: A case study for the Balearic Islands," Energy Economics, Elsevier, vol. 38(C), pages 12-18.
    • Handle: RePEc:eee:eneeco:v:38:y:2013:i:c:p:12-18
    DOI: 10.1016/j.eneco.2013.02.009
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0140988313000339
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.eneco.2013.02.009?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Eugeni Aguiló & Teresa Palmer & Jaume Rosselló, 2012. "Road Transport for Tourism: Evaluating Policy Measures from Consumer Profiles," Tourism Economics, , vol. 18(2), pages 281-293, April.
    2. de Bovenberg, A Lans & Mooij, Ruud A, 1994. "Environmental Levies and Distortionary Taxation," American Economic Review, American Economic Association, vol. 84(4), pages 1085-1089, September.
    3. Birol, F. & Guerer, N., 1993. "Modelling the transport sector fuel demand for developng economies," Energy Policy, Elsevier, vol. 21(12), pages 1163-1172, December.
    4. Gallo, Mariano, 2011. "A fuel surcharge policy for reducing road traffic greenhouse gas emissions," Transport Policy, Elsevier, vol. 18(2), pages 413-424, March.
    5. Polemis, Michael L., 2006. "Empirical assessment of the determinants of road energy demand in Greece," Energy Economics, Elsevier, vol. 28(3), pages 385-403, May.
    6. Marrero, Gustavo A., 2010. "Greenhouse gases emissions, growth and the energy mix in Europe," Energy Economics, Elsevier, vol. 32(6), pages 1356-1363, November.
    7. Kyle, Page & Kim, Son H., 2011. "Long-term implications of alternative light-duty vehicle technologies for global greenhouse gas emissions and primary energy demands," Energy Policy, Elsevier, vol. 39(5), pages 3012-3024, May.
    8. Voith, Richard, 1991. "The long-run elasticity of demand for commuter rail transportation," Journal of Urban Economics, Elsevier, vol. 30(3), pages 360-372, November.
    9. Eugeni Aguiló & Belen Rey & Jaume Rosselló & Catalina M. Torres, 2007. "The Impact of the Post-Liberalisation Growth of LCCs on the Tourism Trends in Spain," Rivista di Politica Economica, SIPI Spa, vol. 97(1), pages 39-60, January-F.
    10. Brons, Martijn & Nijkamp, Peter & Pels, Eric & Rietveld, Piet, 2008. "A meta-analysis of the price elasticity of gasoline demand. A SUR approach," Energy Economics, Elsevier, vol. 30(5), pages 2105-2122, September.
    11. Richard S.J. Tol, 2006. "The Impact Of A Carbon Tax On International Tourism," Working Papers FNU-120, Research unit Sustainability and Global Change, Hamburg University, revised Nov 2006.
    12. Crôtte, Amado & Noland, Robert B. & Graham, Daniel J., 2010. "An analysis of gasoline demand elasticities at the national and local levels in Mexico," Energy Policy, Elsevier, vol. 38(8), pages 4445-4456, August.
    13. Jean-Paul Ceron & Ghislain Dubois, 2006. "Tourism and Climate Change: Proposals for a Research Agenda," Post-Print hal-00488282, HAL.
    14. Konan, Denise Eby & Chan, Hing Ling, 2010. "Greenhouse gas emissions in Hawai[modifier letter turned comma]i: Household and visitor expenditure analysis," Energy Economics, Elsevier, vol. 32(1), pages 210-219, January.
    15. Ramanathan, R., 1999. "Short- and long-run elasticities of gasoline demand in India: An empirical analysis using cointegration techniques," Energy Economics, Elsevier, vol. 21(4), pages 321-330, August.
    16. Bentzen, Jan, 1994. "An empirical analysis of gasoline demand in Denmark using cointegration techniques," Energy Economics, Elsevier, vol. 16(2), pages 139-143, April.
    17. Saenz-de-Miera, Oscar & Rosselló, Jaume, 2012. "The responsibility of tourism in traffic congestion and hyper-congestion: A case study from Mallorca, Spain," Tourism Management, Elsevier, vol. 33(2), pages 466-479.
    18. Sene, Seydina Ousmane, 2012. "Estimating the demand for gasoline in developing countries: Senegal," Energy Economics, Elsevier, vol. 34(1), pages 189-194.
    19. Alves, Denisard C. O. & De Losso da Silveira Bueno, Rodrigo, 2003. "Short-run, long-run and cross elasticities of gasoline demand in Brazil," Energy Economics, Elsevier, vol. 25(2), pages 191-199, March.
    20. Li, Zheng & Rose, John M. & Hensher, David A., 2010. "Forecasting automobile petrol demand in Australia: An evaluation of empirical models," Transportation Research Part A: Policy and Practice, Elsevier, vol. 44(1), pages 16-38, January.
    21. Bakhat, Mohcine & Rosselló, Jaume, 2011. "Estimation of tourism-induced electricity consumption: The case study of Balearics Islands, Spain," Energy Economics, Elsevier, vol. 33(3), pages 437-444, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bakhat, Mohcine & Labandeira, Xavier & Labeaga, José M. & López-Otero, Xiral, 2017. "Elasticities of transport fuels at times of economic crisis: An empirical analysis for Spain," Energy Economics, Elsevier, vol. 68(S1), pages 66-80.
    2. Saenz-de-Miera, Oscar & Rosselló, Jaume, 2014. "Modeling tourism impacts on air pollution: The case study of PM10 in Mallorca," Tourism Management, Elsevier, vol. 40(C), pages 273-281.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Scott, K. Rebecca, 2015. "Demand and price uncertainty: Rational habits in international gasoline demand," Energy, Elsevier, vol. 79(C), pages 40-49.
    2. Havranek, Tomas & Irsova, Zuzana & Janda, Karel, 2012. "Demand for gasoline is more price-inelastic than commonly thought," Energy Economics, Elsevier, vol. 34(1), pages 201-207.
    3. Scott, K. Rebecca, 2011. "Demand and Price Volatility: Rational Habits in International Gasoline Demand," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt2q87432b, Department of Agricultural & Resource Economics, UC Berkeley.
    4. Akinboade, Oludele A. & Ziramba, Emmanuel & Kumo, Wolassa L., 2008. "The demand for gasoline in South Africa: An empirical analysis using co-integration techniques," Energy Economics, Elsevier, vol. 30(6), pages 3222-3229, November.
    5. Sene, Seydina Ousmane, 2012. "Estimating the demand for gasoline in developing countries: Senegal," Energy Economics, Elsevier, vol. 34(1), pages 189-194.
    6. Odeck, James & Johansen, Kjell, 2016. "Elasticities of fuel and traffic demand and the direct rebound effects: An econometric estimation in the case of Norway," Transportation Research Part A: Policy and Practice, Elsevier, vol. 83(C), pages 1-13.
    7. Bigerna, S. & Bollino, C.A. & Micheli, S. & Polinori, P., 2017. "Revealed and stated preferences for CO2 emissions reduction: The missing link," Renewable and Sustainable Energy Reviews, Elsevier, vol. 68(P2), pages 1213-1221.
    8. Emmanuel Flavian Sapnken & Jean Gaston Tamba & Salome Njakomo Essiane & Francis Djanna Koffi & Donatien Njomo, 2018. "Modeling and Forecasting Gasoline Consumption in Cameroon using Linear Regression Models," International Journal of Energy Economics and Policy, Econjournals, vol. 8(2), pages 111-120.
    9. Jimy Ferrer Carbonell & Roberto Escalante Semerena, 2014. "Demanda de gasolina en la zona metropolitana del Valle de México: análisis empírico de la reducción del subsidio," Revista de Economía del Rosario, Universidad del Rosario, June.
    10. Baranzini, Andrea & Weber, Sylvain, 2013. "Elasticities of gasoline demand in Switzerland," Energy Policy, Elsevier, vol. 63(C), pages 674-680.
    11. Rosa M. González-Marrero & Rosa M. Lorenzo-Alegría & Gustavo A. Marrero, 2011. "Gasoline and Diesel Consumption for Road Transport in Spain: a Dynamic Panel Data Approach," Economic Reports 04-2011, FEDEA.
    12. Rodrigues, Luciano & Bacchi, Mirian Rumenos Piedade, 2017. "Analyzing light fuel demand elasticities in Brazil using cointegration techniques," Energy Economics, Elsevier, vol. 63(C), pages 322-331.
    13. Dahl, Carol A., 2012. "Measuring global gasoline and diesel price and income elasticities," Energy Policy, Elsevier, vol. 41(C), pages 2-13.
    14. Kenneth Gillingham & David Rapson & Gernot Wagner, 2016. "The Rebound Effect and Energy Efficiency Policy," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 10(1), pages 68-88.
    15. Melo, Patricia C. & Ramli, Ahmad Razi, 2014. "Estimating fuel demand elasticities to evaluate CO2 emissions: Panel data evidence for the Lisbon Metropolitan Area," Transportation Research Part A: Policy and Practice, Elsevier, vol. 67(C), pages 30-46.
    16. Bhaskara Rao, B. & Rao, Gyaneshwar, 2009. "Cointegration and the demand for gasoline," Energy Policy, Elsevier, vol. 37(10), pages 3978-3983, October.
    17. Michael Fotiadis & Michael L Polemis, 2018. "The Role of Sustainability‐Related Strategies on the Biofuel Industry: Trends, Prospects and Challenges," Business Strategy and the Environment, Wiley Blackwell, vol. 27(6), pages 757-772, September.
    18. Gomez, José M.A. & Legey, Luiz F.L., 2015. "An analysis of the impact of Flex-Fuel vehicles on fuel consumption in Brazil, applying Cointegration and the Kalman Filter," Energy, Elsevier, vol. 81(C), pages 696-705.
    19. Nasser Al Dossary & Carol A. Dahl, 2009. "Is Global Gasoline Demand Still as Responsive to Price?," Working Papers 2009-01, Colorado School of Mines, Division of Economics and Business.
    20. Kakali Kanjilal & Sajal Ghosh, 2018. "Revisiting income and price elasticity of gasoline demand in India: new evidence from cointegration tests," Empirical Economics, Springer, vol. 55(4), pages 1869-1888, December.

    More about this item

    Keywords

    Diesel oil demand; Gasoline demand; Tourism; Fuel tax;
    All these keywords.

    JEL classification:

    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:eneeco:v:38:y:2013:i:c:p:12-18. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/eneco .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.