IDEAS home Printed from https://ideas.repec.org/p/cdl/agrebk/qt3qw4h1pf.html
   My bibliography  Save this paper

Measuring Consumer Responses to a Bottled Water Tax Policy

Author

Listed:
  • Villas-Boas, Sofia B
  • Berck, Peter
  • Stevens, Andrew
  • Moe-Lange, Jacob

Abstract

Using panel data of retail purchases, we measure the effects of the introduction, and later removal, of a bottled-water tax in the state of Washington. We use a difference-in-differences approach to measure effects of the tax against untreated stores (in comparable control states) and untreated weeks (the pre-period). We further estimate triple-difference specifications comparing bottled water to juice and milk substitute products. Our results show that, when imposed, the tax causes bottled water sales to drop by nearly 6% in our preferred specification. Sales never fully recover, even after the tax removal. In terms of the heterogeneity of this effect, we find larger quantity drops in high tax rate areas and in the lowest and highest quintile income areas.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Villas-Boas, Sofia B & Berck, Peter & Stevens, Andrew & Moe-Lange, Jacob, 2016. "Measuring Consumer Responses to a Bottled Water Tax Policy," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt3qw4h1pf, Department of Agricultural & Resource Economics, UC Berkeley.
    • Handle: RePEc:cdl:agrebk:qt3qw4h1pf
    as

    Download full text from publisher

    File URL: https://www.escholarship.org/uc/item/3qw4h1pf.pdf;origin=repeccitec
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Alfonso Flores-Lagunes & Troy Timko, 2015. "Does Participation in 4-H Improve Schooling Outcomes? Evidence from Florida," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 97(2), pages 414-434.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Diansheng Dong & Yuqing Zheng & Hayden Stewart, 2020. "The effects of food sales taxes on household food spending: An application of a censored cluster model," Agricultural Economics, International Association of Agricultural Economists, vol. 51(5), pages 669-684, September.
    2. Fan, Linlin & Stevens, Andrew W. & Thomas, Betty, 2022. "Consumer purchasing response to mandatory genetically engineered labeling," Food Policy, Elsevier, vol. 110(C).
    3. Dionne, Georges & Fenou, Akouété & Mnasri, Mohamed, 2024. "Insurers’ M&A in the United States during the 1990-2022 period: Is the Fed monetary policy a causal factor," Working Papers 24-2, HEC Montreal, Canada Research Chair in Risk Management, revised 16 Jul 2024.
    4. Hoy, Kyle A. & Wrenn, Douglas H., 2020. "The effectiveness of taxes in decreasing candy purchases," Food Policy, Elsevier, vol. 97(C).
    5. Daniel Leppert, 2023. "“No fences make bad neighbors” but markets make better ones: cap-and-trade reduces cross-border SO2 in a natural experiment," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 25(3), pages 407-433, July.
    6. Kristin Kiesel & Mengxin Ji, 2021. "Did state‐mandated restrictions on sugar‐sweetened drinks in California high schools increase soda purchases in school neighborhoods?," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 43(4), pages 1443-1475, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jens Rommel & Meike Weltin, 2021. "Is There a Cult of Statistical Significance in Agricultural Economics?," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 43(3), pages 1176-1191, September.

    More about this item

    Keywords

    Social and Behavioral Sciences;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cdl:agrebk:qt3qw4h1pf. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Lisa Schiff (email available below). General contact details of provider: https://edirc.repec.org/data/dabrkus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.