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Impact of the Seattle Sweetened Beverage Tax on substitution to alcoholic beverages.
PLoS One. 2022; 17(1):e0262578.Plos

Abstract

INTRODUCTION

Taxes are increasingly used as a policy tool aimed at reducing consumption of sugar-sweetened beverages (SSBs), given their association with adverse health outcomes including type 2 diabetes, obesity and cardiovascular disease. However, a potential unintended consequence of such a policy could be that the tax induces substitution to alcoholic beverages. The purpose of this study is to examine the impact of the $0.0175 per ounce Seattle, Washington, Sweetened Beverage Tax (SBT) on volume sold of alcoholic beverages.

METHODS

A difference-in-differences estimation approach was used drawing on universal product code-level food store scanner data on beer (N = 1059) and wine (N = 2655) products one-year pre-tax (February-November, 2017) and one and two-years post-tax (February-November, 2018 and 2019) with Portland, Oregon, as the comparison site.

RESULTS

At two-years post-tax implementation, volume sold of beer in Seattle relative to Portland increased by 7% (ratio of incidence rate ratios [RIRR] = 1.07, 95% CI:1.00,1.15), whereas volume sold of wine decreased by 3% (RIRR = 0.97, 95% CI:0.95,1.00). Overall alcohol (both beer and wine) volume sold increased in Seattle compared to Portland by 4% (RIRR = 1.04, 95% CI:1.01,1.07) at one-year post-tax and by 5% (RIRR = 1.05, 95% CI:1.00,1.10) at two-years post-tax. The implied SSB cross-price elasticities of demand for beer and wine, respectively, were calculated to be 0.35 and -0.15.

CONCLUSIONS

There was evidence of substitution to beer following the implementation of the Seattle SSB tax. Continued monitoring of potential unintended outcomes related to the implementation of SSB taxes is needed in future tax evaluations.

Authors+Show Affiliations

Division of Health Policy and Administration, School of Public Health, University of Illinois Chicago, Chicago, IL, United States of America. Institute for Health Research and Policy, University of Illinois Chicago, Chicago, IL, United States of America.Institute for Health Research and Policy, University of Illinois Chicago, Chicago, IL, United States of America.

Pub Type(s)

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

Language

eng

PubMed ID

35041717

Citation

Powell, Lisa M., and Julien Leider. "Impact of the Seattle Sweetened Beverage Tax On Substitution to Alcoholic Beverages." PloS One, vol. 17, no. 1, 2022, pp. e0262578.
Powell LM, Leider J. Impact of the Seattle Sweetened Beverage Tax on substitution to alcoholic beverages. PLoS One. 2022;17(1):e0262578.
Powell, L. M., & Leider, J. (2022). Impact of the Seattle Sweetened Beverage Tax on substitution to alcoholic beverages. PloS One, 17(1), e0262578. https://doi.org/10.1371/journal.pone.0262578
Powell LM, Leider J. Impact of the Seattle Sweetened Beverage Tax On Substitution to Alcoholic Beverages. PLoS One. 2022;17(1):e0262578. PubMed PMID: 35041717.
* Article titles in AMA citation format should be in sentence-case
TY - JOUR T1 - Impact of the Seattle Sweetened Beverage Tax on substitution to alcoholic beverages. AU - Powell,Lisa M, AU - Leider,Julien, Y1 - 2022/01/18/ PY - 2021/05/10/received PY - 2021/12/29/accepted PY - 2022/1/18/entrez PY - 2022/1/19/pubmed PY - 2022/2/22/medline SP - e0262578 EP - e0262578 JF - PloS one JO - PLoS One VL - 17 IS - 1 N2 - INTRODUCTION: Taxes are increasingly used as a policy tool aimed at reducing consumption of sugar-sweetened beverages (SSBs), given their association with adverse health outcomes including type 2 diabetes, obesity and cardiovascular disease. However, a potential unintended consequence of such a policy could be that the tax induces substitution to alcoholic beverages. The purpose of this study is to examine the impact of the $0.0175 per ounce Seattle, Washington, Sweetened Beverage Tax (SBT) on volume sold of alcoholic beverages. METHODS: A difference-in-differences estimation approach was used drawing on universal product code-level food store scanner data on beer (N = 1059) and wine (N = 2655) products one-year pre-tax (February-November, 2017) and one and two-years post-tax (February-November, 2018 and 2019) with Portland, Oregon, as the comparison site. RESULTS: At two-years post-tax implementation, volume sold of beer in Seattle relative to Portland increased by 7% (ratio of incidence rate ratios [RIRR] = 1.07, 95% CI:1.00,1.15), whereas volume sold of wine decreased by 3% (RIRR = 0.97, 95% CI:0.95,1.00). Overall alcohol (both beer and wine) volume sold increased in Seattle compared to Portland by 4% (RIRR = 1.04, 95% CI:1.01,1.07) at one-year post-tax and by 5% (RIRR = 1.05, 95% CI:1.00,1.10) at two-years post-tax. The implied SSB cross-price elasticities of demand for beer and wine, respectively, were calculated to be 0.35 and -0.15. CONCLUSIONS: There was evidence of substitution to beer following the implementation of the Seattle SSB tax. Continued monitoring of potential unintended outcomes related to the implementation of SSB taxes is needed in future tax evaluations. SN - 1932-6203 UR - https://www.unboundmedicine.com/medline/citation/35041717/Impact_of_the_Seattle_Sweetened_Beverage_Tax_on_substitution_to_alcoholic_beverages_ L2 - https://dx.plos.org/10.1371/journal.pone.0262578 DB - PRIME DP - Unbound Medicine ER -