This research project analyze the incidence of a fuel taxes in four Central American and Caribbean countries—Costa Rica, Jamaica, Nicaragua, and Panama—using household-level expenditure data.
Fuel taxes has added importance given recent global spike in fuel prices. Research on the distributional impacts of fuel taxes will shed light on the distributional impacts of the recent increases in fuel prices, and will have implications for policies aimed at mitigating these impacts.
The proposed research project will contribute to the nascent literature on the distributional effects of fuel taxes in developing countries. We will write a technical academic paper reporting our results and submit it to a scholarly journal. To our knowledge, if published, it would be the first analysis of the distributional effects of fuel taxes in Central America.
