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Revisiting the Effects of Sugar Taxes on Sugary Drink Consumption: Evidence from the Random-Coefficient Demand Mode

Zhang, Yinjunjie; Palma, Marco A.


Berkeley's sugar tax policy is currently under intense scrutiny and debate while similar tax policies are rapidly expanding to other US states. Contrary to theoretical predictions and policy expectations, previous literature documents short-term evidence of increased consumption of sugary drinks in response to a sugar tax policy. We investigate the underlying mechanism behind this behavioral anomaly using the BLP-RC Logit demand model in characteristic space. We find that the sugary drink...[Show more]

CollectionsANU Research Publications
Date published: 2020
Type: Journal article
Source: Journal of Agricultural and Resource Economics
DOI: 10.22004/ag.econ.303601
Access Rights: Open Access


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