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Soda Wars: The Effect Of A Soda Tax Election On University Beverage Sales

Author

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  • Taylor, Rebecca LC
  • Kaplan, Scott
  • Villas‐Boas, Sofia B
  • Jung, Kevin

Abstract

We examine how soda sales changed due to the campaign attention and election outcome of a local excise tax on sugar-sweetened beverages. Using panel data of beverage sales from university retailers in Berkeley, California, we estimate that soda purchases relative to control beverages significantly dropped immediately after the election, months before the tax was implemented in the city of Berkeley or on campus. Supplemental scanner data from off-campus retailers reveal this result is not unique to the university setting. Our findings suggest soda tax media coverage and election outcomes can have larger effects on purchasing behavior than the tax itself. (JEL D12, H20, C23, I38, Q18).

Suggested Citation

  • Taylor, Rebecca LC & Kaplan, Scott & Villas‐Boas, Sofia B & Jung, Kevin, 2019. "Soda Wars: The Effect Of A Soda Tax Election On University Beverage Sales," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt1m55f21s, Department of Agricultural & Resource Economics, UC Berkeley.
    • Handle: RePEc:cdl:agrebk:qt1m55f21s
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    More about this item

    Keywords

    Sugar-Sweetened Beverage Tax; Berkeley; Election; Difference-In-Differences; Event Study; Economics;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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