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Previous studies find that gasoline consumption is more responsive to the gasoline tax than the taxexclusive price. We examine this topic more extensively by considering the differential effects of the tax-exclusive price, federal gasoline excise tax, and total state taxes on gasoline. We find some evidence that the response to changes in the federal excise tax is larger than to changes in state taxes and the tax-exclusive price. We also consider the three specific state taxes and fees on gasoline: excise tax, sales tax, and fees.

Differential Effects of Federal and State Gasoline Taxes on Gasoline Consumption