How well targeted are soda taxes?

Dubois, Pierre, Griffith, Rachel and O'Connell, Martin (2017) How well targeted are soda taxes? TSE Working Paper, n. 17-868, Toulouse

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Official URL: http://tse-fr.eu/pub/32251

Abstract

Soda taxes aim to reduce excessive sugar consumption. Their effectiveness depends on whether they target individuals for whom the harm of consumption is largest. We estimate demand and account for supply-side equilibrium pass-through. We exploit longitudinal data to estimate individual preferences, which allows exible heterogeneity that we relate to a wide array of individual characteristics. We show that soda taxes are effective at targeting young consumers but not individuals with high total dietary sugar; they impose the highest monetary cost on poorer individuals, but are unlikely to be strongly regressive if we account for averted future costs from over consumption.

Item Type: Monograph (Working Paper)
Language: English
Date: December 2017
Place of Publication: Toulouse
Uncontrolled Keywords: preference heterogeneity, discrete choice demand, pass-through, soda tax
JEL codes: D12 - Consumer Economics - Empirical Analysis
H31 - Household
I18 - Government Policy; Regulation; Public Health
Subjects: B- ECONOMIE ET FINANCE
Divisions: TSE-R (Toulouse)
Institution: Université Toulouse 1 Capitole
Site: UT1
Date Deposited: 17 Apr 2018 08:01
Last Modified: 23 May 2019 12:46
OAI ID: oai:tse-fr.eu:32251
URI: http://publications.ut-capitole.fr/id/eprint/25775

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