Cross-border shopping of alcoholic beverages
Evidence from a natural experiment
Bibliographic Data
| ID | 7472831 |
|---|---|
| Authors | Eivind Bjørkås (0009-0008-3767-1760, Norwegian University of Life Sciences), Kyrre Rickertsen (0000-0002-5068-0847, Norwegian University of Life Sciences, corresponding author) |
| Year | 2026 |
| Volume | 138 |
| Pages | 103024 |
| Publication date | 2026-01-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Food Policy (JOURNAL) |
| Journal identifiers | ISSN: 0306-9192 • E-ISSN: 1873-5657 |
| Publisher | Elsevier BV (PUBLISHER) |
| DOI | 10.1016/j.foodpol.2025.103024 |
| OpenAlex | W4417336822 |
| Language | EN |
| References cited | 29 |
Cross-border shopping of alcoholic beverages reduces domestic sales and tax revenue. We estimate the effects of cross-border shopping on sales of hard liquor and wine in the Norwegian government-owned retail monopoly (Vinmonopolet) by using the travel restrictions during the COVID-19 pandemic as a natural experiment. The effects are identified by using a dynamic difference-in-differences approach comparing changes in sales in stores with different driving times to the nearest foreign alcohol store. A new robust estimation method that addresses weaknesses of the commonly used two-way fixed-effects estimator is used. Cross-border shopping effects are identified within 90 min driving time to the nearest foreign alcohol store. In this area, the increased sales in Vinmonopolet are estimated to be 56 % for wine and 35 % for hard liquor due to unavailability of cross-border shopping. These increases correspond to 5 % and 4 % of national sales, respectively, and correspond to half a billion NOK in increased annual tax revenue.
Consumer behaviour · Difference in differences · Natural (archaeology) · Natural experiment · Consumer Market Behavior and Pricing · Economics of Agriculture and Food Markets · Merger and Competition Analysis
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| Citation velocity | historical |
|---|---|
| Highly cited | No |