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Public Policies and the Demand for Carbonated Soft Drinks: A Censored Quantile Regression Approach

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  • Gustavsen, Geir Waehler

Abstract

Heavy consumption of soda may contribute to obesity, strokes, and cardiac problems. From a health perspective, the distribution of the consumption is at least as important as the mean. Censored as well as ordinary quantile regression techniques were used to estimate the demand for sugary soda based on household data from 1989 to 1999. It was found that heavy drinkers are more price- and expenditure-responsive than are light drinkers. The study shows that increasing the taxes on carbonated soft drinks will lead to a small reduction in consumption for small and moderate consumers and a huge reduction for heavy consumers.

Suggested Citation

  • Gustavsen, Geir Waehler, 2005. "Public Policies and the Demand for Carbonated Soft Drinks: A Censored Quantile Regression Approach," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24737, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae05:24737
    DOI: 10.22004/ag.econ.24737
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    References listed on IDEAS

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    Cited by:

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    2. Cash, Sean B. & Lacanilao, Ryan D., 2007. "Taxing Food to Improve Health: Economic Evidence and Arguments," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 36(2), pages 1-9, October.
    3. Zhen Miao & John C. Beghin & Helen H. Jensen, 2013. "Accounting For Product Substitution In The Analysis Of Food Taxes Targeting Obesity," Health Economics, John Wiley & Sons, Ltd., vol. 22(11), pages 1318-1343, November.
    4. Å tulec, Ivana & Petljak, Kristina & Naletina, Dora, 2019. "Weather impact on retail sales: How can weather derivatives help with adverse weather deviations?," Journal of Retailing and Consumer Services, Elsevier, vol. 49(C), pages 1-10.
    5. Lionel Cosnard, 2019. "Taxing Sugar and Sugary Products to Reduce Obesity: A CGE Assessment of Several Tax Policies," Post-Print hal-03148821, HAL.
    6. Cosnard, Lionel & Laborde, David, 2019. "Taxing Sugar and Sugary Products to Reduce Obesity: A CGE Assessment of Several Tax Policies," Conference papers 333067, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    7. Cash, Sean B. & Lacanilao, Ryan D. & Adamowicz, Wiktor L. & Raine, Kim, 2008. "An Experimental Investigation of the Impact of Fat Taxes: Prices Effects, Food Stigma, and Information Effects on Economics Instruments to Improve Dietary Health," Consumer and Market Demand Network Papers 45499, University of Alberta, Department of Resource Economics and Environmental Sociology.

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