Measuring Consumer Responses to a Bottled Water Tax Policy
Peter Berck,
Jacob Moe-Lange,
Andrew Stevens and
Sofia Villas-Boas
American Journal of Agricultural Economics, 2016, vol. 98, issue 4, 981-996
Abstract:
Using panel data of retail purchases, we measure the effects of the introduction, and later removal, of a bottled-water tax in the state of Washington. We use a difference-in-differences approach to measure effects of the tax against untreated stores (in comparable control states) and untreated weeks (the pre-period). We further estimate triple-difference specifications comparing bottled water to juice and milk substitute products. Our results show that, when imposed, the tax causes bottled water sales to drop by nearly 6% in our preferred specification. Sales never fully recover, even after the tax removal. In terms of the heterogeneity of this effect, we find larger quantity drops in high tax rate areas and in the lowest and highest quintile income areas.
Date: 2016
References: Add references at CitEc
Citations: View citations in EconPapers (5)
Downloads: (external link)
http://hdl.handle.net/10.1093/ajae/aaw037 (application/pdf)
Access to full text is restricted to subscribers.
Related works:
Working Paper: Measuring Consumer Responses to a Bottled Water Tax Policy (2016) 
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:oup:ajagec:v:98:y:2016:i:4:p:981-996.
Access Statistics for this article
American Journal of Agricultural Economics is currently edited by Madhu Khanna, Brian E. Roe, James Vercammen and JunJie Wu
More articles in American Journal of Agricultural Economics from Agricultural and Applied Economics Association Contact information at EDIRC.
Bibliographic data for series maintained by Oxford University Press ().