Automotive fuel taxes and cross-border shopping

• Thesis title in Czech: Daně z benzínu a přeshraniční nákupy
• Thesis title in English: Automotive fuel taxes and cross-border shopping
• Key words: cezhraničné nakupovanie, pohonné hmoty, ceny pohonných hmôt, dane na pohonné hmoty, vládne príjmy
• English key words: Cross-border shopping, Automotive fuels, fuel prices, fuel taxes, government revenue
• Academic year of topic announcement: 2011/2012
• Thesis type: Bachelor's thesis
• Thesis language: angličtina
• Department: Institute of Economic Studies (23-IES)
• Supervisor: prof. Petr Janský, Ph.D.
• Author: hidden - assigned by the advisor
• Date of registration: 02.05.2012
• Date of assignment: 24.05.2012
• Date and time of defence: 19.06.2013 00:00
• Venue of defence: IES
• Date of electronic submission: 17.05.2013
• Date of proceeded defence: 19.06.2013
• Opponents: PhDr. Mgr. Jakub Mikolášek

References

LEAL, Andrés, Julio LOPÉZ-LABORDA a Fernando RODRIGO. Prices, taxes and automotive fuel cross-border shopping. Energy Economics. 2009, vol. 31, issue 2, s. 225-234. ISSN 0140-9883. Dostupné z: http://www.sciencedirect.com/science/article/pii/S0140988308001576
KANBUR, Ravi a Michael KEEN. Jeux Sans Frontières: Tax Competition and Tax Coordination When Countries Differ in Size. The American Economic Review. 1993, Vol. 83, No. 4, s. 877-892. Dostupné z: http://www.jstor.org/stable/2117583
NIELSEN, Soren Bo. A Simple Model of Commodity Taxation and Cross-border Shopping. Scandinavian Journal of Economics. 2001, vol. 103, issue 4, s. 599-623. ISSN 0347-0520. DOI: 10.1111/1467-9442.00262. Dostupné z: http://doi.wiley.com/10.1111/1467-9442.00262
LEAL, Andrés, Julio LÓPEZ-LABORDA a Fernando RODRIGO. Cross-Border Shopping: A Survey. International Advances in Economic Research. 2010, vol. 16, issue 2, s. 135-148. ISSN 1083-0898. DOI: 10.1007/s11294-010-9258-z. Dostupné z: http://www.springerlink.com/index/10.1007/s11294-010-9258-z
International Energy Agency. Energy Prices and Taxes. 2012, vol. 1, OECD Publishing.
DOI: 10.1787/energy_tax-v2012-1-en.
RIETVELD, P, F.R BRUINSMA a D.J VAN VUUREN. Spatial graduation of fuel taxes; consequences for cross-border and domestic fuelling.Transportation Research Part A: Policy and Practice. 2001, vol. 35, issue 5, s. 433-457. ISSN 09658564. DOI: 10.1016/S0965-8564(00)00002-1. Dostupné z: http://linkinghub.elsevier.com/retrieve/pii/S0965856400000021
BANFI, Silvia, Massimo FILIPPINI a Lester C. HUNT. Fuel tourism in border regions: The case of Switzerland. Energy Economics. 2005, vol. 27, issue 5, s. 689-707. ISSN 01409883. DOI: 10.1016/j.eneco.2005.04.006. Dostupné z: http://linkinghub.elsevier.com/retrieve/pii/S0140988305000551

Preliminary scope of work

Vo svojej práci sa chcem venovať téme o daniach na pohonné hmoty a ich dopad na cezhraničné nakupovanie. Pokúsim sa odhadnúť, do akej miery môžu rozdiely v cenách pohonných hmôt medzi susediacimi štátmi ovplyvniť rozhodnutie majiteľov motorových vozidiel kúpiť si túto komoditu v príslušných krajinách. Konkrétne sa sústredím na situáciu v Českej Republike (ČR)
Najskôr vysvetlím význam cezhraničného nakupovania a potom štruktúru zdanenia benzínu v ČR. Pre tému cezhraničného nakupovania budem čerpať hlavne z práce Leala, Lopeza-Laborda a Rodriga (2010). Spojitosť zdanenia a cezhraničného nakupovania je dobre opísaná v práci Kanbura a Keena (1993). Tieto práce poslúžia ako základ pre teóriu mojej práce.
Otázky na ktoré sa pokúsim zodpovedať budú nasledujúce: Ak sa zníži spotrebná daň na pohonné hmoty v ČR, ako to ovplyvní predaj pohonných hmôt v ČR? Bude zvýšenie nakupovaného množstva pohonných hmôt cudzincov významne vyššie? Do akej miery to ovplyvní vládne príjmy z výberu na daniach z pohonných hmôt?
Na to aby som odpovedal na tieto otázky budem odhadovať nakupované množstvo pohonných hmôt použitím panelových dát z cien poh. hmôt v ČR, cien poh. hmôt v susediacich krajinách a počtu registrovaných motorových vozidiel v ČR. Tieto data sa dajú získať zo statistic OECD alebo eurostatu. Túto metódu použijem na odhad dopadu zníženia ceny poh. hmôt spôsobenej znížením spotrebnej dane na benzín na nakupované množstvo poh. hmôt v ČR a v susediacich krajinách.. Použitý regresný model bude založený na modeli použitom pre španielske štáty v práci Leala, Lopeza-Laborda a Rodriga (2009).
Následne použijem tieto výsledky pre odhad dopadu na vládny príjem z výberu daní na pohonné hmoty. Podľa Kanbura a Keena (1993) by sa vládny príjem z výberu daní mal zvýšiť pre menší štát pri znížení daní. Preto bude zaujímavé odhadnúť celkový efekt na príjem českej vlády pretože susediace štáty majú rozdielne relatívne veľkosti.
Predbežná osnova:
1. Úvod
2. Cezhraničné nakupovanie
3. Štruktúra daní na pohonné hmoty v ČR
4. Metóda
5. Empirická analýza
6. Diskusia výsledkov
7. Záver

Preliminary scope of work in English

In my thesis, I decided to focus on the topic of automotive fuel taxes and their impact on the cross-border shopping phenomenon. I will try to determine how the differences in the fuel prices among the neighbouring countries can influence the decisions of vehicle users to purchase fuel in those countries. Specifically, I will focus on the situation in the Czech Republic (CR).
Firstly, I will explain the significance of the cross-border shopping, and then the structure of taxation of the fuels in CR. The topic of the cross-border shopping is developed in the works of Leal, Lopez-Laborda and Rodrigo (2010). Basic paper dealing with the topic of taxes and cross-border shopping is Kanbur and Keen (1993). These works will be the foundations of the underlying theory in my thesis.
The questions of my interest are following: If the excise tax on fuel in the Czech Republic is reduced, how would be affected the fuel purchases in the CR? Would it significantly increase the amount that foreign vehicle owners purchase in the CR? And most importantly, how would be affected the government revenues from fuel taxes collection?
In order to answer on these questions, I will attempt to estimate the purchases of fuel using panel data on the purchases of fuel in CR, prices of fuel in CR, prices of fuel in neighbouring countries and number of motor vehicles registered in CR. The corresponding data can be obtained from OECD statistics and Eurostat. I will apply the aforementioned method to estimate impact of lowered price of fuel caused by lower excise tax on fuel on the purchases of fuel in CR and in the neighbouring countries. I will create the regression model based on the one suggested in Leal, Lopez-Laborda and Rodrigo (2009).
Afterwards, I will use these results to estimate the effect on the government revenues collected from fuel taxes. As Kanbur and Keen (1993) suggest, the government revenue from tax collection should increase if smaller country lowers its tax rate. It would be interesting to estimate the total effect on revenue of Czech government, as the neighbouring countries differs significantly in size.
Preliminary outline:
1. Introduction
2. Cross-border shopping
3. Characteristics of the fuel taxation in Czech republic
4. Methodology
5. Empirical analysis
6. Discussion of the results
7. Conclusion