The effects of taxation on the individual consumption of sugar-sweetened beverages

Bonnet, Céline and Réquillart, Vincent (2016) The effects of taxation on the individual consumption of sugar-sweetened beverages. TSE Working Paper, n. 16-638

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Official URL: http://tse-fr.eu/pub/30410

Abstract

When assessing the impact of taxation on the consumption of sugar-sweetened beverages (SSBs), most studies consider the average consumer. Individual consumption is, however, very heterogeneous. In this paper, we propose a three-step methodology to evaluate the impact of SSB taxation on individual consumption. First, we use a disaggregation method to recover individual consumption from observed household consumption. Second, we estimate a matrix of price elasticities of demand. Third, we simulate the impact of a tax policy on individual consumption. We find high level of heterogeneity in consumption. Adults, both men and women, consume a greater quantity of SSBs than children. For any given age category, the average consumption of SSBs increases with body mass index. Among heavy consumers of SSBs, obese and overweight people are over-represented. In France, a e0.20/l tax on SSBs might decrease sugar intake (due to SSBs) by 0.8 kg per year on average and by more than 2 kg for 5% of the adult population; the decrease being greater for an obese adult than a normal weight adult. For children, the decrease in sugar intake is about 0.25 kg on average and greater than 0.6 kg per year for about 5% of children.

Item Type: Monograph (Working Paper)
Language: English
Date: April 2016
Uncontrolled Keywords: Soft drinks, excise tax, differentiated products, individual consumption
JEL codes: D12 - Consumer Economics - Empirical Analysis
H31 - Household
I18 - Government Policy; Regulation; Public Health
Q18 - Agricultural Policy; Food Policy
Subjects: B- ECONOMIE ET FINANCE
Divisions: TSE-R (Toulouse)
Institution: Université Toulouse Capitole
Site: UT1
Date Deposited: 12 Apr 2016 09:54
Last Modified: 19 Jul 2018 14:45
OAI ID: oai:tse-fr.eu:30410
URI: http://publications.ut-capitole.fr/id/eprint/21447

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