The Incidence of Taxes on Sugar-Sweetened Beverages: The Case of Berkeley, California / John Cawley, David Frisvold.

By:

Cawley, John

Contributor(s):

Material type: Text

TextSeries: Working Paper Series (National Bureau of Economic Research) ; no. w21465.Publication details: Cambridge, Mass. National Bureau of Economic Research 2015.Description: 1 online resource: illustrations (black and white)Subject(s):

Online resources:

Available additional physical forms:

Hardcopy version available to institutional subscribers

Abstract: Obesity and diet-related chronic disease are increasing problems worldwide. In response, many governments have enacted or are considering taxes on energy-dense foods. Perhaps the most commonly-recommended policy is a tax on sugar-sweetened beverages (SSBs).Abstract: This paper estimates the extent to which a tax on SSBs is passed through to consumers in the form of higher prices. We examine the first city-level tax on SSBs in the U.S., which was enacted by the voters of Berkeley, California in November, 2014. We collected the prices of various brands and sizes of SSBs and other beverages before and after the implementation of the tax from a near-census of convenience stores and supermarkets in Berkeley, California. We also collected prices from stores in a control city: San Francisco, where in a similar voter referendum failed despite majority support.Abstract: Estimates from difference-in-differences models indicate that, across all brands and sizes of products examined, 43.1 percent (95 percent confidence interval: 27.7 percent - 58.4 percent) of the Berkeley tax was passed on to consumers. The estimates also are consistent with cross-border shopping. For each mile of distance between the store and the closest store selling untaxed SSBs, pass-through rose 33.3 percent for 2-liter bottles and 25.8 percent for 12-packs of 12-ounce cans.

Tags from this library: No tags from this library for this title. Log in to add tags.

Average rating: 0.0 (0 votes)

Holdings
Item type	Home library	Collection	Call number	Status	Date due	Barcode	Item holds
Working Paper	Biblioteca Digital	Colección NBER	nber w21465 (Browse shelf(Opens below))	Not For Loan

Total holds: 0

Collection: Colección NBER Close shelf browser (Hides shelf browser)

Previous	No cover image available	No cover image available	No cover image available	No cover image available	No cover image available	No cover image available	No cover image available	Next
Previous	nber w21462 An Empirical Analysis of Funding Costs Spillovers in the EURO-zone with Application to Systemic Risk /	nber w21463 Better Predictions, Better Allocations: Scientific Advances and Adaptation to Climate Change /	nber w21464 The Ongoing Evolution of US Retail: A Format Tug-of-War /	nber w21465 The Incidence of Taxes on Sugar-Sweetened Beverages: The Case of Berkeley, California /	nber w21466 When is Nonfundamentalness in VARs a Real Problem? An Application to News Shocks /	nber w21467 Contributions to Defined Contribution Pension Plans /	nber w21468 Testing Models of Social Learning on Networks: Evidence from a Lab Experiment in the Field /	Next

August 2015.

Obesity and diet-related chronic disease are increasing problems worldwide. In response, many governments have enacted or are considering taxes on energy-dense foods. Perhaps the most commonly-recommended policy is a tax on sugar-sweetened beverages (SSBs).

This paper estimates the extent to which a tax on SSBs is passed through to consumers in the form of higher prices. We examine the first city-level tax on SSBs in the U.S., which was enacted by the voters of Berkeley, California in November, 2014. We collected the prices of various brands and sizes of SSBs and other beverages before and after the implementation of the tax from a near-census of convenience stores and supermarkets in Berkeley, California. We also collected prices from stores in a control city: San Francisco, where in a similar voter referendum failed despite majority support.

Estimates from difference-in-differences models indicate that, across all brands and sizes of products examined, 43.1 percent (95 percent confidence interval: 27.7 percent - 58.4 percent) of the Berkeley tax was passed on to consumers. The estimates also are consistent with cross-border shopping. For each mile of distance between the store and the closest store selling untaxed SSBs, pass-through rose 33.3 percent for 2-liter bottles and 25.8 percent for 12-packs of 12-ounce cans.