The impact of four alternative policies to decrease soda consumption

We examine the impact of four policy options on consumption of carbonated soft drinks (CSDs) by estimating a random-coefficient discrete-choice model of demand. Policy simulations using demand estimates indicate that the impacts of banning television advertising, limiting container size, and limiting calories on total consumption would be similar-an estimated 15.40-15.75 percent reduction. However, limiting calories would have a significantly greater impact on consumption of regular CSDs (-28.89 percent) and on calories consumed from CSDs (-19.34 percent). A tax on calories was least effective in curtailing overall consumption and consumption of regular CSDs.