The impact of soda taxes on consumer welfare: implications of storability and taste heterogeneity

• 成果类型: Article
• 署名作者: Wang, Emily Yucai
• 署名单位: University of Massachusetts System; University of Massachusetts Amherst
• 刊物名称: RAND JOURNAL OF ECONOMICS
• ISSN/ISSBN: 0741-6261
• DOI: 10.1111/1756-2171.12090
• 发表日期: 2015
• 页码: 409-441
• 关键词: intertemporal price-discrimination; public-health; weight-gain; demand; consumption; elasticity; beverages; DYNAMICS; obesity; MARKET

摘要

The typical analysis on the effectiveness of soda taxes relies on price elasticity estimates from static demand models, which ignores consumers' inventory behaviors and their persistent tastes. This article provides estimates of the relevant price elasticities based on a dynamic demand model that better addresses potential intertemporal substitution and unobservable persistent heterogeneous tastes. It finds that static analyses overestimate the long-run own-price elasticity of regular soda by 60.8%, leading to overestimated consumption reduction of sugar-sweetened soft drinks by up to 57.9% in some cases. Results indicate that soda taxes will raise revenue but are unlikely to substantially impact soda consumption.