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The impact of a `soda tax' on prices. Evidence from French micro data

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Author Info

  • Berardi, N.
  • Sevestre, P.
  • Tepaut, M.
  • Vigneron, A.

Abstract

Based 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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File URL: http://www.banque-france.fr/uploads/tx_bdfdocumentstravail/DT-415_01.pdf
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Bibliographic Info

Paper provided by Banque de France in its series Working papers with number 415.

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Length: 29 pages
Date of creation: 2012
Date of revision:
Handle: RePEc:bfr:banfra:415

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Postal: Banque de France 31 Rue Croix des Petits Champs LABOLOG - 49-1404 75049 PARIS
Web page: http://www.banque-france.fr/
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Keywords: Excise tax; beverage; added sugar; tax incidence; price adjustment.;

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References

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Cited by:
  1. 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.

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