Tags

Type your tag names separated by a space and hit enter

The impact of Seattle's Sweetened Beverage Tax on beverage prices and volume sold.
Econ Hum Biol. 2020 05; 37:100856.EH

Abstract

On January 1, 2018 the city of Seattle, WA, implemented a 1.75-cent per ounce (oz) Sweetened Beverage Tax (SBT) on sugar-sweetened beverages with at least 40 calories per 12 oz. This study drew on universal product code-level store scanner data and used a pre-post intervention-comparison site difference-in-differences (DID) study design to assess the impact of the SBT on taxed beverage prices in Seattle, the volume sold of taxed beverages in Seattle and in its 2-mile border area (cross-border shopping), and the volume sold of untaxed beverages (substitution) relative to changes in its comparison site of Portland, OR. The DID results showed that, on average, in the first year post-tax implementation, prices of taxed beverages rose by 1.03 cents per oz (p < 0.001) corresponding to a 59% tax pass-through rate. Volume sold of taxed beverages fell, on average, by 22% (p < 0.001) in the first year following the implementation of the tax. Volume sold of taxed beverages fell to a greater extent for family- versus individual-size beverages (31% versus 10%) and fell to a greater extent for soda (29%) compared to all other beverage types. Moderate substitution to untaxed beverages was found - volume sold of untaxed beverages increased by 4% (p < 0.05). The results revealed no significant increases in the overall volume sold of taxed beverages in the 2-mile border area of Seattle relative to its comparison site suggesting that tax avoidance in the form of cross-border shopping did not dampen the impact of the tax.

Authors+Show Affiliations

Division of Health Policy and Administration, School of Public Health, University of Illinois at Chicago, Chicago, IL, United States. Electronic address: powelll@uic.edu.Institute for Health Research and Policy, University of Illinois at Chicago, Chicago, IL, United States.

Pub Type(s)

Journal Article
Research Support, Non-U.S. Gov't

Language

eng

PubMed ID

32070906

Citation

Powell, Lisa M., and Julien Leider. "The Impact of Seattle's Sweetened Beverage Tax On Beverage Prices and Volume Sold." Economics and Human Biology, vol. 37, 2020, p. 100856.
Powell LM, Leider J. The impact of Seattle's Sweetened Beverage Tax on beverage prices and volume sold. Econ Hum Biol. 2020;37:100856.
Powell, L. M., & Leider, J. (2020). The impact of Seattle's Sweetened Beverage Tax on beverage prices and volume sold. Economics and Human Biology, 37, 100856. https://doi.org/10.1016/j.ehb.2020.100856
Powell LM, Leider J. The Impact of Seattle's Sweetened Beverage Tax On Beverage Prices and Volume Sold. Econ Hum Biol. 2020;37:100856. PubMed PMID: 32070906.
* Article titles in AMA citation format should be in sentence-case
TY - JOUR T1 - The impact of Seattle's Sweetened Beverage Tax on beverage prices and volume sold. AU - Powell,Lisa M, AU - Leider,Julien, Y1 - 2020/01/21/ PY - 2019/09/15/received PY - 2020/01/19/revised PY - 2020/01/20/accepted PY - 2020/2/20/pubmed PY - 2021/2/3/medline PY - 2020/2/20/entrez KW - Cross-border shopping KW - Fiscal policy KW - SSB tax KW - Sugar-sweetened beverages KW - Tax pass-through KW - Tax policy SP - 100856 EP - 100856 JF - Economics and human biology JO - Econ Hum Biol VL - 37 N2 - On January 1, 2018 the city of Seattle, WA, implemented a 1.75-cent per ounce (oz) Sweetened Beverage Tax (SBT) on sugar-sweetened beverages with at least 40 calories per 12 oz. This study drew on universal product code-level store scanner data and used a pre-post intervention-comparison site difference-in-differences (DID) study design to assess the impact of the SBT on taxed beverage prices in Seattle, the volume sold of taxed beverages in Seattle and in its 2-mile border area (cross-border shopping), and the volume sold of untaxed beverages (substitution) relative to changes in its comparison site of Portland, OR. The DID results showed that, on average, in the first year post-tax implementation, prices of taxed beverages rose by 1.03 cents per oz (p < 0.001) corresponding to a 59% tax pass-through rate. Volume sold of taxed beverages fell, on average, by 22% (p < 0.001) in the first year following the implementation of the tax. Volume sold of taxed beverages fell to a greater extent for family- versus individual-size beverages (31% versus 10%) and fell to a greater extent for soda (29%) compared to all other beverage types. Moderate substitution to untaxed beverages was found - volume sold of untaxed beverages increased by 4% (p < 0.05). The results revealed no significant increases in the overall volume sold of taxed beverages in the 2-mile border area of Seattle relative to its comparison site suggesting that tax avoidance in the form of cross-border shopping did not dampen the impact of the tax. SN - 1873-6130 UR - https://www.unboundmedicine.com/medline/citation/32070906/The_impact_of_Seattle's_Sweetened_Beverage_Tax_on_beverage_prices_and_volume_sold_ L2 - https://linkinghub.elsevier.com/retrieve/pii/S1570-677X(19)30275-8 DB - PRIME DP - Unbound Medicine ER -