1193 | 624 | Separating proximate fuel markets with policy measures: the ups and downs of a regional experience in Italy | Giorgia Bressan (1), Gian Pietro Zaccomer (2)
Different market conditions across the international border can induce borderland residents of the most expensive country to make purchases abroad. When this practice becomes widespread, it not only creates environmental problems, but also has obvious negative effects on the economic sector of the expensive country, leading to losses in terms of tax revenues. In Friuli Venezia Giulia (Italy), the problem of cross-border purchase exists and it is mainly related to fuel. At this purpose, in 1997, a regional law was introduced to reduce the cost of refueling domestically. At the basis of the regional policy, that underwent two major changes through time, there is the idea of providing motorists contributions per litre those values change according to their residence._x000D_
The first law relied on a pioneering scientific study, which led to the creation of a discount system based on the distance of the municipality of residence to the Italian-Slovenian border. Over time, the regional market conditions underwent substantial changes, mainly due to strong price competition from economic operators in Austria and the neighboring Italian region of Veneto. Consequently, the regional lawmaker decided to reform the system, by introducing a new principle of classification of municipalities based on economic criteria. Only in 2022, after the crisis induced by the pandemic, the regional lawmaker partially reintroduced the concept of distance by offering greater contributions for the residents of the border strip._x000D_
The purpose of this work is to present how the Italian regional lawmaker has attempted to separate its fuel market from those of its neighbors since 1997. The hoc sample surveys and econometric cost-benefit models that supported the design of the policy, together with some recent trends in fuel sales will be presented, to discuss on the ability of the regional authorities to incorporate geographical principles in the legislation._x000D_
Giorgia Bressan (1), Gian Pietro Zaccomer (2)
(1) Tor Vergata University of Rome (Italy) (2) University of Udine (Italy)
ID Abstract: 624