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The Impact of Beverage Taxes on Quantity and Quality of Consumption in France

Author

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  • Silva, Andres
  • Etilé, Fabrice
  • Boizot-Szantai, Christine
  • Dharmasena, Senarath
Abstract
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.

Suggested Citation

  • Silva, Andres & Etilé, Fabrice & Boizot-Szantai, Christine & Dharmasena, Senarath, 2013. "The Impact of Beverage Taxes on Quantity and Quality of Consumption in France," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150428, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea13:150428
    DOI: 10.22004/ag.econ.150428
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    References listed on IDEAS

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    Cited by:

    1. Cosnard, Lionel & Laborde, David, 2019. "Taxing Sugar and Sugary Products to Reduce Obesity: A CGE Assessment of Several Tax Policies," Conference papers 333067, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    2. Lionel Cosnard, 2019. "Taxing Sugar and Sugary Products to Reduce Obesity: A CGE Assessment of Several Tax Policies," Post-Print hal-03148821, HAL.

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    Consumer/Household Economics; Food Consumption/Nutrition/Food Safety; International Relations/Trade;
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