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The Ineffectiveness of Fuel Taxes in France

Numéro: 2014-2

S. Porcher et T. Porcher, 2014 – The Ineffectiveness of Fuel Taxes in France
Abstract: Fuel taxes can be employed to correct externalities associated with pollution and raise government revenue. In this paper, we decompose fuel taxes from tax-exclusive fuel prices to see how consumers respond to market versus policy-driven fuel price changes. Our analysis reveals that fuel taxes might be an inefficient means of achieving the various goals for which they have been assigned by governments.

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