The heterogeneous incidence of fuel carbon taxes: Evidence from station-level data

We use station-level price data and a significant diesel fuel carbon tax reform to study who bears the economic burden of taxes. difference-in-differences strategy estimate pass-through large increase retail prices, where we compare prices faced by private motorists gasoline prices. find that on average taxes are less than fully passed through consumer which suggests consumers supply chain split these Using information station location, match observations with postcode-level incomes measures urbanization, show there differences in rate across areal between rural urban areas up one year after reform. The effect decreases income degree urbanization.