Facoltà di scienze economiche

Fuel tourism in border regions : the case of Switzerland

Banfi, Silvia ; Filippini, Massimo ; Hunt, Lester C.

In: Energy Economics, 2005, vol. 27, no. 5, p. 689-707

This paper explores the issue of ‘fuel tourism’ in Switzerland. For the period 1985 to 1987, a panel data model for the border regions of Switzerland, (Italy, France, and Germany) is estimated. The results show a significant impact of the gasoline price differential on demand, suggesting that a decrease of 10% in the Swiss gasoline price leads to a reduction in demand in the border areas of... Plus

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    Summary
    This paper explores the issue of ‘fuel tourism’ in Switzerland. For the period 1985 to 1987, a panel data model for the border regions of Switzerland, (Italy, France, and Germany) is estimated. The results show a significant impact of the gasoline price differential on demand, suggesting that a decrease of 10% in the Swiss gasoline price leads to a reduction in demand in the border areas of nearly 17½%. It is shown that fuel tourism accounted for about 9% of overall gasoline sales in the three regions during the period 1985 to 1997 and that the recently proposed Swiss CO2-tax might, given current conditions, eliminate net fuel tourism.