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The Impact of Four Alternative Policies to Decrease Soda Consumption

Published online by Cambridge University Press:  15 September 2016

Yizao Liu ,
Rigoberto A. Lopez  and
Chen Zhu
Yizao Liu*
Affiliation:
Department of Agricultural and Resource Economics at University of Connecticut
Rigoberto A. Lopez
Affiliation:
Department of Agricultural and Resource Economics at University of Connecticut
Chen Zhu
Affiliation:
College of Economics and Management at China Agricultural University
*
Correspondence: Yizao Liu ▪ Department of Agricultural and Resource Economics ▪ University of Connecticut ▪ 1376 Storrs Road, Unit 4021 ▪ Storrs, CT 06269-4021 ▪ Phone 860.486.1923 ▪ Email yizao.liu@uconn.edu.
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Abstract

We examine the impact of four policy options on consumption of carbonated soft drinks (CSDs) by estimating a random-coefficient discrete-choice model of demand. Policy simulations using demand estimates indicate that the impacts of banning television advertising, limiting container size, and limiting calories on total consumption would be similar—an estimated 15.40–15.75 percent reduction. However, limiting calories would have a significantly greater impact on consumption of regular CSDs (–28.89 percent) and on calories consumed from CSDs (–19.34 percent). A tax on calories was least effective in curtailing overall consumption and consumption of regular CSDs.

Keywords

advertisingcarbonated soft drinksconsumer behaviordemandobesitypolicysodastaxes
Type
Selected Papers
Information
Agricultural and Resource Economics Review , Volume 43 , Issue 1 , April 2014 , pp. 53 - 68
Copyright
Copyright © 2014 Northeastern Agricultural and Resource Economics Association 

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