2026/05/20 by Giacomo Brusco, Lorenzo Pessina, Andrea Tulli · 1 voice
Economics, Econometrics and Finance · Business, Management and Accounting · #Fiscal Policy and Economic Growth #Corporate Taxation and Avoidance #Taxation and Compliance Studies
paper · doi:10.1111/sjpe.70069
openalex created_date 2025/10/10 · openalex publication_date 2026/05/20 · openalex updated_date 2026/07/16
ABSTRACT The 2022 energy crisis, triggered by the war in Ukraine, led many governments to enact fuel tax holidays. We study the Italian fuel tax holiday, finding incomplete pass‐through: 65% at less competitive stations versus 80% at those with more rivals. Less competitive stations also exhibit greater pass‐through variability. When same‐brand stations are neighbors, pass‐through falls for less competitive stations but not in competitive markets. These results highlight how the multiplicity of equilibria in imperfectly competitive markets shapes tax pass‐through. Finally, stations owned by Russian state‐owned exhibit higher‐than‐average pass‐through, possibly reflecting supply conditions shaped by the threat of future sanctions.