Cross-border shopping of alcohol – What is the effect on tax revenue and sales and which products are most affected?
Working paper
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https://hdl.handle.net/11250/3138471Utgivelsesdato
2024-07-04Metadata
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- Discussion papers (SAM) [656]
Sammendrag
We use COVID-19 border closings and comprehensive store-level data on Norwegian alcohol sales to quantify the effect cross-border shopping of alcohol on sales volume and commodity tax revenue. Effects are large, for instance we estimate that commodity tax revenue for wine is about 20% lower because of cross-border shopping. Using product level data we establish that effects come from across all products rather than just a few, but effects are especially marked for bag-in-box wines. Neither availability of the exact same product in Sweden nor idiosyncratic product-level price difference with respect to Sweden has any marked effect on the impact of cross-border shopping on sales.