Fuel tourism in Dutch border regions: Are only salient price differentials relevant?

Abstract

Based on a detailed data set of consumer payments, we find only limited evidence that fluctuations in cross-border fuel price differentials are relevant for Dutch consumers' fuel demand. Consumers living close to the German border did, however, react to a salient increase in Dutch excise fuel duties in January 2014. Even so, the associated increase of fuel tourism was very temporary. Furthermore, there are no robust indications that fuel tourism is relevant for Dutch consumers living further than 10 km from either the border with Belgium or Germany. The absence of fuel tourism may be explained by the low level of cross-border commuting by Dutch workers.