The existing tax policies toward gasoline and diesel cars in European countries provide a unique opportunity to analyze … engine based on their annual mileage; prices are set by the manufacturers. The relative pricing of gasoline and diesel cars …-mileage consumers. On average, about 75% to 90% of the price differentials between gasoline and diesel cars can be explained by markup …

traffic. The tax on fuel is implemented to curb externalities linked to both consumption of fuel and road use. The heavier tax …