Laffer in Luxemburg : Tankverkehr und Steueraufkommen im Großherzogtum

Luxembourg is on the winner's side of tax competition in the field of excise duties on goods as gasoline, cigarettes and coffee. The paper simulates revenues from the taxation of petrol and diesel on the basis of the year 2005. Unlike other studies of cross-border "tankering" we differentiate between four distinct consumer groups: domestic consumption, fuel tourism, consumption of cross-border commuters, and consumption of transit traffic. On the basis of the ensuing, extremely volatile demand we construct a simple, empirically calibrated simulation model for tax revenue and the Laffer-curve. We also look at the trade-off between revenue maximation and climate protection naturally with special emphasis on the section of the Laffer-curve where both objects harmonise.