The Impact of Beverage Taxes on Quantity and Quality of Consumption in France
No hay miniatura disponible
Fecha
Título de la revista
ISSN de la revista
Título del volumen
Editor
Resumen
Descripción
Many countries around the World have applied, or are studying to apply, sugar-sweetened beverage taxes
as a way to mitigate increasing obesity. The objective of our study is to illustrate about the relevance of
controlling for quality choices within product categories when analyzing the impact of a sugar-sweetened
beverage tax. We calculate own-price quantity and quality elasticities using the methodology developed by
Deaton (1988). For comparison purposes, we also calculate own price elasticities with a standard unit price
methodology, which means using unit values as a proxy for prices. With both set of elasticities, we simulate
a scenario of 20% tax. Using Deaton’s methodology, we find a decrease in quantity (-12.4%) and quality
demanded (-0.3%). Using unit values methodology, we find a larger expected decrease in quantity
demanded (-22.9%). Therefore, we show empirical evidence that both quantity and quality need to be taken
into account to understand the implications of a sugar-sweetened beverage tax.