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Demand for carbonated soft drinks: implications for obesity policy

Author

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  • Rigoberto A. Lopez
  • Kristen L. Fantuzzi

Abstract

This article examines consumer choices of Carbonated Soft Drinks (CSDs) and their implications for obesity policy. Demand in relation to product and consumer heterogeneity is estimated via a random coefficients logit model (Berry et al ., 1995) applied to quarterly scanner data for 26 brands in 20 US cities, involving 40 000 consumers. Counterfactual experiments show that caloric taxes could be effective in decreasing caloric CSD consumption though having little impact on obesity incidence.

Suggested Citation

  • Rigoberto A. Lopez & Kristen L. Fantuzzi, 2012. "Demand for carbonated soft drinks: implications for obesity policy," Applied Economics, Taylor & Francis Journals, vol. 44(22), pages 2859-2865, August.
    • Handle: RePEc:taf:applec:44:y:2012:i:22:p:2859-2865
    DOI: 10.1080/00036846.2011.568397
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    Citations

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    Cited by:

    1. Liu, Yizao & Lopez, Rigoberto & Zhu, Chen, 2013. "How Effective is Public Policy in Decreasing Soda Consumption? An Assessment of Four Policy Options," Working Paper series 155328, University of Connecticut, Charles J. Zwick Center for Food and Resource Policy.
    2. Hirsch, Stefan, 2022. "Product placement in the meat substitute sector: Evidence from a spatial demand model," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322181, Agricultural and Applied Economics Association.
    3. Catherine Haeck & Nicholas Lawson & Krystel Poirier, 2022. "Estimating consumer preferences for different beverages using the BLP approach," Working Papers 22-01, Research Group on Human Capital, University of Quebec in Montreal's School of Management.
    4. Liu, Yizao & Lopez, Rigoberto A., 2013. "The Impact of Social Media on Consumer Demand: The Case of Carbonated Soft Drink Market," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 148913, Agricultural and Applied Economics Association.
    5. Kao, Kai-Erh & Jones, Amanda C. & Ohinmaa, Arto & Paulden, Mike, 2020. "The health and financial impacts of a sugary drink tax across different income groups in Canada," Economics & Human Biology, Elsevier, vol. 38(C).
    6. Bimbo, Francesco & Bonanno, Alessandro & Viscecchia, Rosaria, 2019. "An empirical framework to study food labelling fraud: an application to the Italian extra-virgin olive oil market," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 63(4), October.
    7. Haeck, Catherine & Lawson, Nicholas & Poirier, Krystel, 2022. "Estimating consumer preferences for different beverages using the BLP approach," Economics & Human Biology, Elsevier, vol. 46(C).
    8. Gonzalez, Julia, 2018. "Soda consumption and brand loyalty," 2018 Annual Meeting, August 5-7, Washington, D.C. 273980, Agricultural and Applied Economics Association.
    9. Gonzalez, J. & Lacaze, V., 2018. "New goods with new attributes: combining revealed and stated preferences to assess the effect of a novel quality label in the food industry," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277559, International Association of Agricultural Economists.
    10. Zheng, Hualu & Huang, Lu, 2014. "The Incidence of Soda Taxes with Imperfect Information and Strategic Firm Behavior," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170201, Agricultural and Applied Economics Association.
    11. Xun Li & Rigoberto A. Lopez, 2015. "Do Brand Advertising Spillovers Matter?," Agribusiness, John Wiley & Sons, Ltd., vol. 31(2), pages 229-242, April.
    12. Rigoberto A. Lopez & Yizao Liu & Chen Zhu, 2013. "Spillover and Competitive Effects of Advertising in the Carbonated Soft Drink Market," Working Papers 18, University of Connecticut, Department of Agricultural and Resource Economics, Charles J. Zwick Center for Food and Resource Policy.
    13. Stefan Hirsch & Giulia Tiboldo & Rigoberto A. Lopez, 2018. "A tale of two Italian cities: brand-level milk demand and price competition," Applied Economics, Taylor & Francis Journals, vol. 50(49), pages 5239-5252, October.
    14. Julia Hoffmann & Julia Bronnmann, 2019. "Bottle size matters: Heterogeneity in the German carbonated soft drink market," Agribusiness, John Wiley & Sons, Ltd., vol. 35(4), pages 556-573, October.
    15. Samane Zare & Mahdi Asgari & Timothy Woods & Yuqing Zheng, 2020. "Consumer proximity and brand loyalty in craft soda marketing: A case study of Ale‐8‐One," Agribusiness, John Wiley & Sons, Ltd., vol. 36(4), pages 522-541, October.

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