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Differential Effects of Federal and State Gasoline Taxes on Gasoline Consumption

Author

Listed:
  • Susan Xu Tang

    (Georgia State University)

  • David L. Sjoquist

    (Georgia State University)

Abstract

Previous studies find that gasoline consumption is more responsive to the gasoline tax than the tax¬exclusive price. We examine this topic more extensively by considering the differential effects of the tax-exclusive price, federal gasoline excise tax, and total state taxes on gasoline. We find some evidence that the response to changes in the federal excise tax is larger than to changes in state taxes and the tax-exclusive price. We also consider the three specific state taxes and fees on gasoline: excise tax, sales tax, and fees.

Suggested Citation

  • Susan Xu Tang & David L. Sjoquist, 2019. "Differential Effects of Federal and State Gasoline Taxes on Gasoline Consumption," Hacienda Pública Española / Review of Public Economics, IEF, vol. 229(2), pages 11-32, June.
    • Handle: RePEc:hpe:journl:y:2019:v:229:i:2:p:11-32
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    References listed on IDEAS

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    More about this item

    Keywords

    Excise tax; gasoline consumption; tax aversion;
    All these keywords.

    JEL classification:

    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household

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