The impact of a `soda tax' on prices. Evidence from French micro data
AbstractBased on a unique database consisting of hundreds of thousands of non-alcoholic beverage price records collected in about 800 supermarkets in France, we evaluate the impact on prices of the soda tax, an excise on drinks with added sugar or sweetener, introduced in January 2012 in France. We adopt a difference in differences approach and find that the tax was passed-through to consumer prices gradually over the first semester of 2012. After 6 months, the tax was fully shifted to soda prices while the pass-through to prices of fruit drinks and flavored waters was not complete. We also find that the impact of this tax was different across retailing groups and beverage brands.
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Bibliographic InfoPaper provided by Banque de France in its series Working papers with number 415.
Length: 29 pages
Date of creation: 2012
Date of revision:
Excise tax; beverage; added sugar; tax incidence; price adjustment.;
Find related papers by JEL classification:
- C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
- D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
- H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence
- L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-01-07 (All new papers)
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