The effects of taxation on the individual consumption of sugar-sweetened beverages
Céline Bonnet and
Vincent Réquillart ()
No 16-638, TSE Working Papers from Toulouse School of Economics (TSE)
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.
Keywords: soft drinks; excise tax; differentiated products; individual consumption (search for similar items in EconPapers)
JEL-codes: D12 H31 I18 Q18 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-pub
Date: 2016-04, Revised 2018-06
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
https://www.tse-fr.eu/sites/default/files/TSE/docu ... /2016/wp_tse_638.pdf Full text (application/pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:tse:wpaper:30410
Access Statistics for this paper
More papers in TSE Working Papers from Toulouse School of Economics (TSE) Contact information at EDIRC.
Bibliographic data for series maintained by ().