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

Author

Listed:
  • 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.

Suggested Citation

  • Berardi, N. & Sevestre, P. & Tepaut, M. & Vigneron, A., 2012. "The impact of a `soda tax' on prices. Evidence from French micro data," Working papers 415, Banque de France.
  • Handle: RePEc:bfr:banfra:415
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    References listed on IDEAS

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    Cited by:

    1. E. Gautier. & A. Lalliard., 2013. "How do VAT changes affect inflation in France?," Quarterly selection of articles - Bulletin de la Banque de France, Banque de France, pages 5-27.
    2. repec:eee:hepoli:v:121:y:2017:i:8:p:887-894 is not listed on IDEAS
    3. Jeffrey Grogger, 2015. "Soda Taxes and the Prices of Sodas and Other Drinks: Evidence from Mexico," NBER Working Papers 21197, National Bureau of Economic Research, Inc.
    4. 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.
    5. Erich Muehlegger & Richard L. Sweeney, 2017. "Pass-Through of Input Cost Shocks Under Imperfect Competition: Evidence from the U.S. Fracking Boom," NBER Working Papers 24025, National Bureau of Economic Research, Inc.
    6. Grogger, Jeff, 2016. "Soda Taxes and the Prices of Sodas and Other Drinks: Evidence from Mexico," IZA Discussion Papers 9682, Institute for the Study of Labor (IZA).

    More about this item

    Keywords

    Excise tax; beverage; added sugar; tax incidence; price adjustment.;

    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

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