Simulation of the impact of the tax on soda in rural Mexican economies: application in a case study

Authors

  • Marco Andrés López Santiago Universidad Autónoma Chapingo-Unidad Regional Universitaria de Zonas Áridas. Carretera Gómez Palacio-Chihuahua, km 40. Bermejillo, Durango, México. CP. 35230. Tel. (872) 7760160
  • Sergio Ernesto Medina Cuéllar Consejo Nacional de Ciencia y Tecnología (CONACYT)- Centro de Investigación en Geografía y Geomática. “Ing. Jorge L. Tamayo”, A. C. Contoy 137, Esq. Chemax. Col. Lomas de Padierna, Delegación Tlalpan, Cd. México. CP. 14240
  • Cesar A. Meza Herrera Universidad Autónoma Chapingo-Unidad Regional Universitaria de Zonas Áridas. Carretera Gómez Palacio-Chihuahua, km 40. Bermejillo, Durango, México. CP. 35230. Tel. (872) 7760160
  • Ramón Valdivia Alcalá Universidad Autónoma Chapingo-División de Ciencias Económico-Administrativas (DICEA)
  • Ricardo David Valdez Cepeda Universidad Autónoma Chapingo-Unidad Regional Universitaria de Zonas Áridas. Carretera Gómez Palacio-Chihuahua, km 40. Bermejillo, Durango, México. CP. 35230. Tel. (872) 7760160

DOI:

https://doi.org/10.29312/remexca.v8i3.46

Keywords:

computable rural general equilibrium model, elasticity, rural households, taxes on sodas

Abstract

This research shows the analysis of the effects of the  simulation of the increase of $1 per liter to the price of  sodas. The simulation was performed in a characteristic  rural community of Mexico. The general computable  rural equilibrium model was used under two scenarios: In  perfect competition and in absence of markets. The main  effect under the two scenarios was a drop of 14.29% in  consumption; without consequences on the agricultural,  livestock and factor markets. This drink behaved as an  inelastic good in the magnitude of -0.85. The soda tax  discouraged consumption; however, an effective reduction  would require combined strategies. 

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Published

2017-08-08

How to Cite

López Santiago Marco Andrés, Medina Cuéllar Sergio Ernesto, Cesar A. Meza Herrera, Valdivia Alcalá Ramón, and Ricardo David Valdez Cepeda. 2017. “Simulation of the Impact of the Tax on Soda in Rural Mexican Economies: Application in a Case Study”. Revista Mexicana De Ciencias Agrícolas 8 (3). México, ME:727-33. https://doi.org/10.29312/remexca.v8i3.46.

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