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Should we resurrect ‘TIPP flottante’ if oil price booms again? Specific taxes as fuel consumer price stabilizers

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  • Di Giacomo, Marina
  • Piacenza, Massimiliano
  • Scervini, Francesco
  • Turati, Gilberto

Abstract

As an answer to soaring oil prices, stabilization mechanisms based on specific taxes, such as the French ‘TIPP flottante’, have been discussed and introduced in some countries in early 2000s, but then soon abandoned. Our contribution aims at analyzing the excise pass-through and the cost shifting in a comprehensive European context to understand whether such a mechanism could actually reach its target. Our results show that, on average, fuel tax reductions are effective in stabilize consumer price, but the measure is particularly costly for public budgets.

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  • Di Giacomo, Marina & Piacenza, Massimiliano & Scervini, Francesco & Turati, Gilberto, 2015. "Should we resurrect ‘TIPP flottante’ if oil price booms again? Specific taxes as fuel consumer price stabilizers," Energy Economics, Elsevier, vol. 51(C), pages 544-552.
    • Handle: RePEc:eee:eneeco:v:51:y:2015:i:c:p:544-552
    DOI: 10.1016/j.eneco.2015.08.004
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    Cited by:

    1. Verde, Stefano F. & Di Cosmo, Valeria, 2024. "A dynamic carbon tax on gasoline," MPRA Paper 120485, University Library of Munich, Germany.

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    More about this item

    Keywords

    Fuel market; Tax incidence; Excise pass-through; Price stabilization; Oil price;
    All these keywords.

    JEL classification:

    • H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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