Fuel tax incidence and the role of heterogeneous pass-through evidence from Finland

Huolimatta siitä, että liikennepolttoaineverotus on mahdollisesti erittäin tehokas tapa vähentää autoilusta johtuvia hiilidioksidipäästöjä, verotusta usein vastustetaan, koska sitä pidetään regressiivisenä. Huoli regressiivisyydestä perustuu siihen, että polttoainekulujen oletetaan muodostavan suure...

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Main Author: Palanne, Kimmo
Other Authors: Kauppakorkeakoulu, School of Business and Economics, Taloustieteet, Business and Economics, Jyväskylän yliopisto, University of Jyväskylä
Format: Master's thesis
Language:eng
Published: 2018
Subjects:
Online Access: https://jyx.jyu.fi/handle/123456789/59095
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author Palanne, Kimmo
author2 Kauppakorkeakoulu School of Business and Economics Taloustieteet Business and Economics Jyväskylän yliopisto University of Jyväskylä
author_facet Palanne, Kimmo Kauppakorkeakoulu School of Business and Economics Taloustieteet Business and Economics Jyväskylän yliopisto University of Jyväskylä Palanne, Kimmo Kauppakorkeakoulu School of Business and Economics Taloustieteet Business and Economics Jyväskylän yliopisto University of Jyväskylä
author_sort Palanne, Kimmo
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description Huolimatta siitä, että liikennepolttoaineverotus on mahdollisesti erittäin tehokas tapa vähentää autoilusta johtuvia hiilidioksidipäästöjä, verotusta usein vastustetaan, koska sitä pidetään regressiivisenä. Huoli regressiivisyydestä perustuu siihen, että polttoainekulujen oletetaan muodostavan suuremman osan köyhempien kotitalouksien kokonaiskulutuksesta. Tutkimusten mukaan polttoaineverotus on tällaisen polttoaineiden kulutusosuuksien vertailun perusteella kuitenkin lähes suhteellista kehittyneissä maissa. Tutkimuksissa toisaalta oletetaan, ettei veromuutosten seurauksena tapahtuvissa hinnanmuutoksissa esiinny alueellista vaihtelua. Verotuksen kohtaantoteorian ja aihetta käsittelevien empiiristen tutkimusten perusteella erot kysynnän ja tarjonnan hintajoustoissa sekä markkinoiden kilpailullisuudessa voivat ilmetä eroina veron läpimenossa hintoihin (pass-through). Epäsymmetriset hintamuutokset ovat siis mahdollisia, ja niillä voi olla merkittäviä tulonjaollisia vaikutuksia. Tässä tutkielmassa tarkastellaan Suomessa 1.1.2012 tehdyn dieselveron korotuksen läpimenon alueellista vaihtelua. Korotuksen suuruus oli huomattavat 10.55 senttiä litralta ja vastasi dieselveron 29 prosentin nousua. Tutkielmassa käytetty huoltoasemakohtainen hinta-aineisto mahdollistaa hintavaikutusten analysoinnin postinumeroaluetasolla. Käyttäen erilaisia difference-in-differences-mallispesifikaatioita läpimeno oli tulosten perusteella noin 15 prosenttiyksikköä alhaisempaa rikkaimmilla, asuntojen hintojen perusteella varakkaimmilla, tiheimmin asutuilla sekä kaupunkimaisimmilla alueilla verrattuna toisiin alueellisiin ääripäihin. Kasvaneet alueelliset hintaerot toisaalta tasoittuivat veromuutosta seuranneiden kahden tai kolmen vuoden aikana. Ottaen huomioon veromuutoksen suuruuden näillä alueellisilla hintaeroilla kuitenkin todennäköisesti oli todellisia tulonjaollisia vaikutuksia, ja ne muuttivat polttoaineverotusta regressiivisempään suuntaan. Despite being potentially highly effective in curbing carbon dioxide emissions arising from motoring, taxes on transportation fuels often face public discontent for their perceived regressivity. While this concern originates from the presumption that fuel expenditure constitutes a larger share of total consumption among poorer households, most studies suggest that fuel taxes are nearly proportional in this sense in developed countries. However, the studies assume that the fuel price increases caused by tax raises exhibit no regional variation. According to the theory of tax incidence and the limited number of empirical studies delving into the matter, differences in the price elasticities of income and supply and the degree of competition might translate into heterogeneity in regional pass-through rates. Asymmetric price changes are thus plausible and may play a significant role in determining the distributional consequences of fuel taxation. This thesis studies the degree of heterogeneity in pass-through of the Finnish diesel tax raise implemented on January 1, 2012. The substantial raise of 10.55 euro cents per liter corresponded to a 29 percent increase in the excise tax on diesel. Using station-level fuel price data enables analyzing the asymmetricity in price responses at the postal code level. The results suggest that pass-through rates fell with regional income, wealth, proxied by house prices, population density and the degree of urbanization. Based on various difference-in-differences specifications, pass-through rates were approximately 15 percentage points lower in the richest, wealthiest, the most densely populated and the most urban areas compared to the other extremes. However, the regional price disparities were mitigated during the following two to three years. Nevertheless, considering the size of the tax raise, these regional differences likely had actual distributional implications and tilted fuel taxation to a more regressive direction.
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spellingShingle Palanne, Kimmo Fuel tax incidence and the role of heterogeneous pass-through : evidence from Finland dieselvero difference-in-differences polttoaineverotus veron hintavaikutus verotuksen kohtaanto diesel tax fuel taxation pass-through tax incidence Kansantaloustiede Economics 2041 autoilu polttoainevero verotus polttoaineet motoring fuel tax taxation fuels
title Fuel tax incidence and the role of heterogeneous pass-through : evidence from Finland
title_full Fuel tax incidence and the role of heterogeneous pass-through : evidence from Finland
title_fullStr Fuel tax incidence and the role of heterogeneous pass-through : evidence from Finland Fuel tax incidence and the role of heterogeneous pass-through : evidence from Finland
title_full_unstemmed Fuel tax incidence and the role of heterogeneous pass-through : evidence from Finland Fuel tax incidence and the role of heterogeneous pass-through : evidence from Finland
title_short Fuel tax incidence and the role of heterogeneous pass-through
title_sort fuel tax incidence and the role of heterogeneous pass through evidence from finland
title_sub evidence from Finland
title_txtP Fuel tax incidence and the role of heterogeneous pass-through : evidence from Finland
topic dieselvero difference-in-differences polttoaineverotus veron hintavaikutus verotuksen kohtaanto diesel tax fuel taxation pass-through tax incidence Kansantaloustiede Economics 2041 autoilu polttoainevero verotus polttoaineet motoring fuel tax taxation fuels
topic_facet 2041 Economics Kansantaloustiede autoilu diesel tax dieselvero difference-in-differences fuel tax fuel taxation fuels motoring pass-through polttoaineet polttoainevero polttoaineverotus tax incidence taxation veron hintavaikutus verotuksen kohtaanto verotus
url https://jyx.jyu.fi/handle/123456789/59095 http://www.urn.fi/URN:NBN:fi:jyu-201808063733
work_keys_str_mv AT palannekimmo fueltaxincidenceandtheroleofheterogeneouspassthroughevidencefromfinland