Hostname: page-component-76d6cb85b7-kcxw8 Total loading time: 0 Render date: 2026-07-20T01:49:18.807Z Has data issue: false hasContentIssue false
  • English
  • Français

The Impact of Four Alternative Policies to Decrease Soda Consumption

Published online by Cambridge University Press:  15 September 2016

Yizao Liu ,
Rigoberto A. Lopez  and
Chen Zhu
Yizao Liu*
Affiliation:
Department of Agricultural and Resource Economics at University of Connecticut
Rigoberto A. Lopez
Affiliation:
Department of Agricultural and Resource Economics at University of Connecticut
Chen Zhu
Affiliation:
College of Economics and Management at China Agricultural University
*
Correspondence: Yizao Liu ▪ Department of Agricultural and Resource Economics ▪ University of Connecticut ▪ 1376 Storrs Road, Unit 4021 ▪ Storrs, CT 06269-4021 ▪ Phone 860.486.1923 ▪ Email yizao.liu@uconn.edu.
Get access Rights & Permissions [Opens in a new window]

Abstract

We examine the impact of four policy options on consumption of carbonated soft drinks (CSDs) by estimating a random-coefficient discrete-choice model of demand. Policy simulations using demand estimates indicate that the impacts of banning television advertising, limiting container size, and limiting calories on total consumption would be similar—an estimated 15.40–15.75 percent reduction. However, limiting calories would have a significantly greater impact on consumption of regular CSDs (–28.89 percent) and on calories consumed from CSDs (–19.34 percent). A tax on calories was least effective in curtailing overall consumption and consumption of regular CSDs.

Keywords

advertisingcarbonated soft drinksconsumer behaviordemandobesitypolicysodastaxes

Information

Type
Selected Papers
Information
Agricultural and Resource Economics Review , Volume 43 , Issue 1 , April 2014 , pp. 53 - 68
Copyright
Copyright © 2014 Northeastern Agricultural and Resource Economics Association 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Article purchase

Temporarily unavailable

References

Andreyeba, T., Long, M., and Brownell, K. 2010. “The Impact of Food Prices on Consumption: A Systematic Review of Research on the Price Elasticity of Demand for Food.” American Journal of Public Health 100(2): 216–222.Google Scholar
Berry, S., Levinsohn, J., and Pakes, A. 1995. “Automobile Prices in Market Equilibrium.” Econometrica 63(4): 841–889.Google Scholar
Better Business Bureau. 2013. “Children's Food and Beverage Advertising Initiative.” www.bbb.org/us/childrens-food-and-beverage-advertising-initiative (accessed January 28, 2014).Google Scholar
Beverage Digest. 2013. “Fact Book 201: Statistical yearbook of Nonalcoholic Beverages.” Bedford Hills, NY.Google Scholar
Block, J.P., Chandra, A., McManus, K.D., and Willett, W.C. 2010. “Point-of-purchase Price and Education Intervention to Reduce Consumption of Sugary Soft Drinks.” American Journal of Public Health 100(8): 1427–1433.CrossRefGoogle ScholarPubMed
Centers for Disease Control and Prevention. 2010. “Reducing Access to Sugar-sweetened Beverages among Youth.” CDC, Atlanta, GA. Available at www.cdc.gov/features/healthybeverages (accessed January 28, 2014).Google Scholar
Chan, T.Y. 2006. “Estimating a Continuous Hedonic-choice Model with an Application to Demand for Soft Drinks.” RAND Journal of Economics 37(2): 466–482.Google Scholar
Chen, S.E., Liu, J., and Binkley, J.K. 2012. “An Exploration of the Relationship between Income and Eating Behavior.” Agricultural and Resource Economics Review 41(1): 82–91.CrossRefGoogle Scholar
Cohen, A. 2008. “Package Size and Price Discrimination in the Paper Towel Market.” International Journal of Industrial Organization 26(2): 502–516.Google Scholar
Dhar, T., and Baylis, K. 2011. “Fast-food Consumption and the Ban on Advertising Targeting Children: The Quebec Experience.” Journal of Marketing Research 48(October): 799–813.Google Scholar
Dhar, T., Chavas, J.P., Cotterill, R.W., and Gould, B.W. 2005. “An Econometric Analysis of Brand-level Strategic Pricing between Coca-Cola Company and PepsiCo.” Journal of Economics and Management Strategy 14(4): 905–931.Google Scholar
Doganoglu, T., and Kappler, D. 2006. “Goodwill and Dynamic Advertising Strategies.” Quantitative Marketing Economics 4(1): 5–29.Google Scholar
Dubé, J. 2004. “Multiple Discreteness and Product Differentiation: Demand for Carbonated Soft Drinks.” Marketing Science 23(1): 66–81.CrossRefGoogle Scholar
Dubé, J., Fox, J., and Su, C. 2012. “Improving the Numerical Performance of BLP Static and Dynamic Discrete Choice Random Coefficient Demand Estimation. Econometrica 80(5): 2231–2267.Google Scholar
Dubé, J., Hitsch, G., and Manchanda, P. 2005. “An Empirical Model of Advertising Dynamics.” Quantitative Marketing and Economics 3(2): 107–144.CrossRefGoogle Scholar
Economic Research Service, U.S. Department of Agriculture. 2013. Food Availability Data System. USDA Economic Research Service, Washington, DC. www.ers.usda.gov/data-products/food-availability-(per-capita)-data-system.aspx (accessed January 28, 2014).Google Scholar
Fernandez, L. 2013. “Richmond Soda Tax Fizzled.” www.nbcbayarea.com/news/local/Richmond-Soda-Tax-177591311.html (accessed January 28, 2014).Google Scholar
Finkeistein, E.A., Zhen, C., Bilger, M., Nonnemaker, J., Farooqui, A.M., and Todd, J.E. 2013. Implications of a Sugar-sweetened Beverage Tax When Substitutions to Nonbeverage Items Are Considered.” Journal of Health Economics 32(1): 2019–2039.Google Scholar
Fletcher, J., Frisvold, D., and Tefft, N. 2010. “Can Soft Drink Taxes Reduce Population Weight?” Contemporary Economic Policy 28(1): 23–35.Google Scholar
Flood, J.E., Roe, L.S., and Rolls, B.J. 2006. “Effect of Increased Beverage Portion Size on Energy at a Meal.” Journal of the American Dietetic Association 106(12): 1984–1990.CrossRefGoogle ScholarPubMed
Gasmi, F., Laffont, J.J., and Vuong, Q. 1992. “Econometric Analysis of Collusive Behavior in a Soft-drink Market.” Journal of Economics and Marketing Strategy 1(2): 277–311.Google Scholar
Ha, E., Caine-Bish, N., Holloman, C., and Lowry-Gordon, K. 2009. “Evaluation of Effectiveness of Class-based Nutrition Intervention on Changes in Soft Drink and Milk Consumption among Young Adults.” Nutrition Journal 8(1): 50.Google Scholar
Harris, J.L., Sarda, V., Schwartz, M.B., and Brownell, K.D. 2013. “Redefining ‘Child-directed Advertising’ to Reduce Unhealthy Television Food Advertising.” American Journal of Preventive Medicine 44(4): 358–364.Google Scholar
Hausman, J. 1994. “Valuation of New Goods under Perfect and Imperfect Competition.” NBER Working Paper 4970, National Bureau of Economic Research, Cambridge, MA.Google Scholar
Johnson, R.K., and Yon, B.A. 2010. “Weighing in on Added Sugar and Health.” Journal of the American Dietetic Association 11(9): 1296–1299.Google Scholar
Knittel, C., and Metaxoglou, K. 2008. “Estimation of Random Coefficient Logit Models of Demand.” NBER Working Paper 14080, National Bureau of Economic Research, Cambridge, MA.Google Scholar
Lopez, R.A., and Fantuzzi, K.L. 2012. “Demand for Carbonated Soft Drinks: Implications for Obesity Policy.” Applied Economics 4(22): 2859–2865.Google Scholar
Lusk, J.L. 2013. The Food Police: A Well-fed Manifesto about the Politics of Your Plate. New York, NY: Crown Forum.Google Scholar
Mariuzzo, F., Walsh, P., and Whelan, C. 2003. “Firm Size and Market Power in Carbonated Soft Drinks.” Review of Industrial Organization 23(3/4): 283–299.Google Scholar
Marlow, M., and Shiers, A. 2010. “Would Soda Taxes Really Yield Health Benefits?” Regulation Fall: 34–38.Google Scholar
Marriott, B.P., Olsho, L., Hadden, L., and Connor, P. 2010. “Intake of Added Sugar and Selected Nutrients in the United States National Health and Nutrition Examination Survey 2003–2006.” Critical Reviews in Food Science and Nutrition 50(3): 228–258.CrossRefGoogle Scholar
Nevo, A. 2001. “Measuring Market Power in the Ready-to-eat Cereal Industry. Econometrica 69(2): 307–342.Google Scholar
Palmer, B. 2009. “Does Soda Taste Different in a Bottle Than a Can?” www.slate.com/articles/news_and_politics/explainer/2009/07/does_soda_taste_different_in_a_bottle_than_a_can.html (accessed January 28, 2014).Google Scholar
Tax Foundation. 2011. “Soda Excise Taxes by State: Enacted and Proposed in 2011 Session.” http://taxfoundation.org/sites/taxfoundation.org/files/UserFiles/Image/Blog/soda_excise_large.png (accessed January 28, 2014).Google Scholar
Zhen, C., Wohlgenant, M.K., Karns, S., and Kaufman, P. 2011. “Habit Formation and Demand for Sugar-sweetened Beverages.” American Journal of Agricultural Economics 93(1): 175–193.Google Scholar
Zheng, Y., McLaughlin, E.W., and Kaiser, H.M. 2013. “Taxing Food and Beverages: Theory, Evidence, and Policy.” American Journal of Agricultural Economics 95(3): 705–723.CrossRefGoogle Scholar