EconPapers    
Economics at your fingertips  
 

The Incidence of Soft-Drink Taxes on Consumer Prices and Welfare: Evidence from the French " Soda Tax"

Fabrice Etilé (), Sébastien Lecocq and Christine Boizot-Szantai ()
Additional contact information
Christine Boizot-Szantai: ALISS - Alimentation et sciences sociales - INRA - Institut National de la Recherche Agronomique

PSE Working Papers from HAL

Abstract: The behavioural impact and acceptability of soft-drink taxes depend crucially on their incidence on consumer prices and welfare across socio-economic groups and markets. We use KantarWorldpanel homescan data to analyse the incidence of the 2012 French soda tax on Exact Price Indices (EPI) measuring consumer welfare from the availability and consumption of Sugar-Sweetened Beverages (SSB) and Non-Calorically Sweetened Beverages (NCSB) at a local geographical level. The soda tax has had significant, similar but small impacts on the EPI of SSB and NCSB (+4%), corresponding to an aggregate pass-through of about 40%. Tax incidence was slightly higher for low-income and high-consuming households. Retailers set higher pass-throughs in low-income, less-competitive and smaller markets. They did not change their product assortments. The lack of horizontal competition in low-income markets had a sizeable effect on tax regressivity. Finally, the negative income gradient in tax incidence was offset by a positive gradient in expected health benefits.

Keywords: Market structure; Tax incidence; Soft drink; Exact price index; Regressivity (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-agr, nep-eur and nep-pub
Date: 2018-06
Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-01808198
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://halshs.archives-ouvertes.fr/halshs-01808198/document (application/pdf)

Related works:
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:hal:psewpa:halshs-01808198

Access Statistics for this paper

More papers in PSE Working Papers from HAL
Bibliographic data for series maintained by CCSD ().

 
Page updated 2019-10-15
Handle: RePEc:hal:psewpa:halshs-01808198