Evaluating a seasonal fuel tax in a mass tourism destination: A case study for the Balearic Islands

Bakhat, Mohcine; Nadal, Jaume Rosselló

doi:10.1016/j.eneco.2013.02.009

Cited by 11 publications

(6 citation statements)

References 34 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Another two significant variables are the percentage of travelers from abroad and the municipality being within the influence area of a national park. Regarding the percentage of travelers from abroad, the result coincides with that obtained by Bakhat and Rosselló (2013) and confirms that the high cost of searching for this type of tourism means that service stations can increase the price. The latter, that is, the presence of a national park in the municipality, is also a logical result, since visiting this tourist attraction would usually require traveling by cars, which increases the demand for fuels and positively impacts on the price of fuel.…”

Section: Methodology and Resultssupporting

confidence: 82%

“…This would indicate that this specific demand is likely to suffer more acutely from low price sensitivity than the general demand for petrol. Bakhat and Rosselló’s (2013) analysis assessing the consequences of a seasonal road fuel tax deserves particular attention. These authors, using time series models, estimate price elasticities of the demand for diesel oil and gasoline in the Balearic Islands (Spain).…”

Section: Literature Review and Research Gapmentioning

confidence: 99%

“…These problems call for policies to mitigate their effects and determine the extent to which they can be alleviated or even eliminated. A number of authors, including Bakhat and Rosselló (2013), Rendeiro (2015), Hernández and Corral (2016), and Cavallaro et al (2017), have examined alternative strategies to tackle these negative effects.…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Fuel prices at petrol stations in touristic cities

2019

View full text Add to dashboard Cite

While it may seem obvious from common sense that retail fuel prices should be higher in touristic rather than in nontouristic cities, the related empirical literature has failed either to clearly support this assumption or to qualify and quantify the effect of tourism on retail fuel prices. Using a self-created data set that includes prices across a large sample of petrol stations located in mainland Spain and the Balearic Islands, we seek to evaluate the effects of tourism on local destination retail petrol prices. The estimations prove three main effects: Petrol prices are higher in cities with high levels of tourism, nearby beaches, and/or with the socioeconomic influence of a national park. In fact, petrol stations add a margin of around 6.6% and 6.4% for unleaded gasoline 95 and diesel, respectively, in touristic cities. Second, the more touristic the city, the higher these prices. Third, in the case of touristic municipalities, the percentage of travelers from abroad and being within the area of influence of a national park are two of the main drivers that explain this overpricing.

show abstract

Section: Methodology and Resultssupporting

confidence: 82%

Section: Literature Review and Research Gapmentioning

confidence: 99%

See 1 more Smart Citation

Fuel prices at petrol stations in touristic cities

2019

View full text Add to dashboard Cite

show abstract

“…Despite the government’s justification for imposing tourism taxes, literature has varying opinions on the importance of tourism tax on the economy. Bakhat and Rosselló (2013), Mayor and Tol (2007), and Seetaram, Song, and Page (2014) all suggest a reduction or removal of tourism tax due to its negative impact on the tourism industry. In related studies, Palmer and Antoni (2003) advocate for abolishing tourism taxes, asserting it is merely an instrument to generate additional revenue.…”

Section: Introductionmentioning

confidence: 99%

The Effect of Tourism Taxation on International Arrivals to a Small Tourism-Dependent Economy

Adedoyin

Seetaram

Disegna

et al. 2021

Journal of Travel Research

View full text Add to dashboard Cite

This paper examines the effects of tax policies on international tourist arrivals to the Maldives using the fully modified ordinary least squares (FMOLS) panel data method. The Maldives is chosen as a case study because the nation is heavily dependent on tourism and earn up to 70% of total government revenue in tourism tax. As expected, the estimated tax elasticities show that tourism tax adversely influences inbound travel, but significant differences across source markets are observed. Specifically, a 10% increase in tourism tax reduces demand by 5.4%. The degree of responsiveness of tourism demand to changes in taxes is essential for tourism policy since a change in the cost of visiting a destination resulting from a change in tourism tax policies affects inbound tourism demand. Consequently, the effectiveness of current fiscal policies is a matter of concern for attracting international tourists to the Maldives.

show abstract

“…In this field, a wide range of regulatory measures have been applied in Europe, but there is a growing consensus that it is preferable to regulate less and instead to apply specific taxes based on the ‘polluter pays’ principle, with fixed taxes on the purchase price and variable ones on the use made of the vehicle (Palmer-Tous and Riera, 2005). Empirical studies have proposed fiscal measures to internalise the externalities produced by rental cars in tourism-reliant areas (Palmer-Tous et al, 2007), while externalities such as pollution and traffic congestion have also been studied by Aguiló et al (2005), Bakhat and Rosselló (2013) and Saenz and Rosselló (2014).…”

Section: Introductionmentioning

confidence: 99%

Tourist tax to promote rentals of low-emission vehicles

2020

View full text Add to dashboard Cite

In the Canary Islands (Spain), the tourism boom has been paralleled by sharp growth in the car rental sector. However, this economic activity is associated with problems such as rising levels of vehicle emissions. In this article, we discuss, on the one hand, the introduction of a tax to internalise the costs of emissions from car rental fleets and, on the other, the measures to reward users who rent environmentally-friendly cars. For this purpose, we propose a model based on statistical decision theory, from which a Bayesian rule is derived. According to this model, the tax increases with the number of days the car is rented but decreases in line with the environmental efficiency of the vehicle. A data sample of visitors to the Canary Islands is used to compare the covariates involved in computing the number of car rental days and the corresponding tax payable.

show abstract

Evaluating a seasonal fuel tax in a mass tourism destination: A case study for the Balearic Islands

Cited by 11 publications

References 34 publications

Fuel prices at petrol stations in touristic cities

Fuel prices at petrol stations in touristic cities

The Effect of Tourism Taxation on International Arrivals to a Small Tourism-Dependent Economy

Tourist tax to promote rentals of low-emission vehicles

Contact Info

Product

Resources

About