Partial versus General Equilibrium Calorie and Revenue Effects Associated with a Sugar-Sweetened Beverage Tax

Taxes on sugar-sweetened beverages have been widely proposed to combat the U.S. obesity crisis. Most previous work has found the effects of a SSB tax to be small to moderate. We address three limitations. First, we incorporate the supply side via a stochastic equilibrium displacement model. Second,...

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Bibliographic Details
Main Authors: Senarath Dharmasena, George Davis, Oral Jr. Capps
Format: Article
Language:English
Published: Western Agricultural Economics Association 2014-08-01
Series:Journal of Agricultural and Resource Economics
Subjects:
Online Access:https://ageconsearch.umn.edu/record/186559
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spelling doaj-553c92b373ca44629c4194b8268b97a32020-11-25T02:57:28ZengWestern Agricultural Economics AssociationJournal of Agricultural and Resource Economics1068-55022327-82852014-08-0139215717310.22004/ag.econ.186559186559Partial versus General Equilibrium Calorie and Revenue Effects Associated with a Sugar-Sweetened Beverage TaxSenarath DharmasenaGeorge DavisOral Jr. CappsTaxes on sugar-sweetened beverages have been widely proposed to combat the U.S. obesity crisis. Most previous work has found the effects of a SSB tax to be small to moderate. We address three limitations. First, we incorporate the supply side via a stochastic equilibrium displacement model. Second, we account for uncertainty elasticities using probability distributions associated with elasticities. Third, we address industry revenue effects. We find that assumptions about the supply side are more important than assumptions about substitution. ignoring supply side severely overestimates quantity and calorie effects and slightly underestimated revenue effects.https://ageconsearch.umn.edu/record/186559calorie effectsgeneral equilibrium modelpartial equilibrium modelrevenue effectssugar-sweetened beverage tax
collection DOAJ
language English
format Article
sources DOAJ
author Senarath Dharmasena
George Davis
Oral Jr. Capps
spellingShingle Senarath Dharmasena
George Davis
Oral Jr. Capps
Partial versus General Equilibrium Calorie and Revenue Effects Associated with a Sugar-Sweetened Beverage Tax
Journal of Agricultural and Resource Economics
calorie effects
general equilibrium model
partial equilibrium model
revenue effects
sugar-sweetened beverage tax
author_facet Senarath Dharmasena
George Davis
Oral Jr. Capps
author_sort Senarath Dharmasena
title Partial versus General Equilibrium Calorie and Revenue Effects Associated with a Sugar-Sweetened Beverage Tax
title_short Partial versus General Equilibrium Calorie and Revenue Effects Associated with a Sugar-Sweetened Beverage Tax
title_full Partial versus General Equilibrium Calorie and Revenue Effects Associated with a Sugar-Sweetened Beverage Tax
title_fullStr Partial versus General Equilibrium Calorie and Revenue Effects Associated with a Sugar-Sweetened Beverage Tax
title_full_unstemmed Partial versus General Equilibrium Calorie and Revenue Effects Associated with a Sugar-Sweetened Beverage Tax
title_sort partial versus general equilibrium calorie and revenue effects associated with a sugar-sweetened beverage tax
publisher Western Agricultural Economics Association
series Journal of Agricultural and Resource Economics
issn 1068-5502
2327-8285
publishDate 2014-08-01
description Taxes on sugar-sweetened beverages have been widely proposed to combat the U.S. obesity crisis. Most previous work has found the effects of a SSB tax to be small to moderate. We address three limitations. First, we incorporate the supply side via a stochastic equilibrium displacement model. Second, we account for uncertainty elasticities using probability distributions associated with elasticities. Third, we address industry revenue effects. We find that assumptions about the supply side are more important than assumptions about substitution. ignoring supply side severely overestimates quantity and calorie effects and slightly underestimated revenue effects.
topic calorie effects
general equilibrium model
partial equilibrium model
revenue effects
sugar-sweetened beverage tax
url https://ageconsearch.umn.edu/record/186559
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AT georgedavis partialversusgeneralequilibriumcalorieandrevenueeffectsassociatedwithasugarsweetenedbeveragetax
AT oraljrcapps partialversusgeneralequilibriumcalorieandrevenueeffectsassociatedwithasugarsweetenedbeveragetax
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