How does a change in the excise tax on beer impact beer retail prices in South Africa?
| dc.creator | Russell, Caitlan | |
| dc.creator | Van Walbeek, Corne | |
| dc.date | 2016-01-21T09:10:54Z | |
| dc.date | 2016-01-21T09:10:54Z | |
| dc.date | 2016-01 | |
| dc.date.accessioned | 2017-06-06T10:56:16Z | |
| dc.date.available | 2017-06-06T10:56:16Z | |
| dc.date.issued | 2017-06-06 | |
| dc.description | This paper uses price data, collected by Statistics South Africa, to estimate the effect of a change in the excise tax on the retail price of beer. We find strong evidence that the excise tax on beer is overshifted to consumers. The pass-through coefficient is estimated at 4.83 (95% CI: 4.02; 5.64) for lager, and at 4.77 (95% CI: 4.04; 5.50) for all beer (which includes dark beer). This implies that for every R1/unit increase in the excise tax, the retail price increases by about R4.80/unit. Of the 23 brand-packaging combinations considered, the pass-through coefficients vary between 2.39 and 10.05 (median = 5.30). The majority of the price change in response to a tax change occurs immediately, and prices have fully adjusted two months after the excise tax increase becomes effective. Pass-through differs substantially across packaging types. The pass-through coefficient on 750ml bottles is substantially lower than that of 330 ml (or 340 ml) cans and 6 x 330 ml (or 6 x 340 ml) “six-packs”. The overshifting of the excise tax has positive implications for public health policy, since they increase the effectiveness of alcohol taxes as a tool to reduce the (excessive) consumption of beer. | |
| dc.identifier | Russell, C., van Walbeek, C. (2016). How does a change in the excise tax on beer impact beer retail prices in South Africa? A Southern Africa Labour and Development Research Unit Working Paper Number 162. Cape Town: SALDRU, University of Cape Town | |
| dc.identifier | 978-1-928281-23-8 | |
| dc.identifier | http://hdl.handle.net/11090/810 | |
| dc.identifier.ris | TY - Working Paper DA - 2017-06-06 DB - OpenUCT DP - University of Cape Town KW - Excise tax KW - South Africa KW - Alcohol LK - https://open.uct.ac.za PB - University of Cape Town PY - 2017 T1 - How does a change in the excise tax on beer impact beer retail prices in South Africa? TI - How does a change in the excise tax on beer impact beer retail prices in South Africa? UR - http://hdl.handle.net/11090/810 ER - | en_ZA |
| dc.identifier.uri | http://hdl.handle.net/11090/810 | |
| dc.language | en | |
| dc.publisher.department | SALDRU | en_ZA |
| dc.publisher.faculty | Faculty of Commerce | en_ZA |
| dc.publisher.institution | University of Cape Town | |
| dc.relation | Saldru Working Papers;162 | |
| dc.subject | Excise tax | |
| dc.subject | South Africa | |
| dc.subject | Alcohol | |
| dc.title | How does a change in the excise tax on beer impact beer retail prices in South Africa? | |
| dc.type | Working Paper | |
| uct.type.publication | Research | en_ZA |
| uct.type.resource | Working Paper | en_ZA |