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The Impact of Four Alternative Policies to Decrease Soda Consumption

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  • Liu, Yizao
  • Lopez, Rigoberto A.
  • Zhu, Chen

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.

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  • Liu, Yizao & Lopez, Rigoberto A. & Zhu, Chen, 2014. "The Impact of Four Alternative Policies to Decrease Soda Consumption," Agricultural and Resource Economics Review, Cambridge University Press, vol. 43(1), pages 53-68, April.
    • Handle: RePEc:cup:agrerw:v:43:y:2014:i:01:p:53-68_00
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    6. Chen, Xuan & Liu, Yizao & Jaenicke, Edward C. & Rabinowitz, Adam N., 2019. "New concerns on caffeine consumption and the impact of potential regulations: The case of energy drinks," Food Policy, Elsevier, vol. 87(C), pages 1-1.
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    8. Chen, Xuan & Liu, Yizao & Jaenicke, Edward C. & Rabinowitz, Adam N., 2018. "The Added Caffeine, Health Concerns and Potential Regulations: The Case of Energy Drinks," 2018 Annual Meeting, August 5-7, Washington, D.C. 273853, Agricultural and Applied Economics Association.
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