IDEAS home Printed from https://ideas.repec.org/a/eee/ehbiol/v9y2011i4p329-341.html
   My bibliography  Save this article

Measuring weight outcomes for obesity intervention strategies: The case of a sugar-sweetened beverage tax

Author

Listed:
  • Lin, Biing-Hwan
  • Smith, Travis A.
  • Lee, Jonq-Ying
  • Hall, Kevin D.

Abstract

Taxing unhealthy foods has been proposed as a means to improve diet and health by reducing calorie intake and raising funds to combat obesity, particularly sugar-sweetened beverages (SSBs). A growing number of studies have examined the effects of such food taxes, but few have estimated the weight-loss effects. Typically, a static model of 3500 calories for one pound of body weight is used, and the main objective of the study is to demonstrate its bias. To accomplish the objective, we estimate income-segmented beverage demand systems to examine the potential effects of a SSB tax. Elasticity estimates and a hypothetical 20 percent effective tax rate (or about 0.5 cent per ounce) are applied to beverage intake data from a nationally representative survey, and we find an average daily reduction of 34–47 calories among adults and 40–51 calories among children. The tax-induced energy reductions are translated into weight loss using both static and dynamic calorie-to-weight models. Results demonstrate that the static model significantly overestimates the weight loss from reduced energy intake by 63 percent in year one, 346 percent in year five, and 764 percent in year 10, which leads to unrealistic expectations for obesity intervention strategies. The tax is estimated to generate $5.8 billion a year in revenue and is found to be regressive, although it represents about 1 percent of household food and beverage spending.

Suggested Citation

  • Lin, Biing-Hwan & Smith, Travis A. & Lee, Jonq-Ying & Hall, Kevin D., 2011. "Measuring weight outcomes for obesity intervention strategies: The case of a sugar-sweetened beverage tax," Economics & Human Biology, Elsevier, vol. 9(4), pages 329-341.
  • Handle: RePEc:eee:ehbiol:v:9:y:2011:i:4:p:329-341
    DOI: 10.1016/j.ehb.2011.08.007
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1570677X11000906
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Fletcher, Jason M. & Frisvold, David E. & Tefft, Nathan, 2010. "The effects of soft drink taxes on child and adolescent consumption and weight outcomes," Journal of Public Economics, Elsevier, vol. 94(11-12), pages 967-974, December.
    2. Jason M. Fletcher & David Frisvold & Nathan Tefft, 2010. "Can Soft Drink Taxes Reduce Population Weight?," Contemporary Economic Policy, Western Economic Association International, vol. 28(1), pages 23-35, January.
    3. repec:aph:ajpbhl:10.2105/ajph.2005.083782_8 is not listed on IDEAS
    4. Dharmasena, Senarath & Capps, Oral, Jr., 2010. "On Taxing Sugar-Sweetened Beverages to Combat the Obesity Problem," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61322, Agricultural and Applied Economics Association.
    5. Schroeter, Christiane & Lusk, Jayson & Tyner, Wallace, 2008. "Determining the impact of food price and income changes on body weight," Journal of Health Economics, Elsevier, vol. 27(1), pages 45-68, January.
    6. repec:aph:ajpbhl:10.2105/ajph.2008.151415_8 is not listed on IDEAS
    7. Mancino, Lisa & Todd, Jessica & Lin, Biing-Hwan, 2009. "Separating what we eat from where: Measuring the effect of food away from home on diet quality," Food Policy, Elsevier, vol. 34(6), pages 557-562, December.
    8. Berndt, Ernst R & Savin, N Eugene, 1975. "Estimation and Hypothesis Testing in Singular Equation Systems with Autoregressive Disturbances," Econometrica, Econometric Society, vol. 43(5-6), pages 937-957, Sept.-Nov.
    9. Alston, Julian M. & Chalfant, James A. & Piggott, Nicholas E., 2001. "Incorporating demand shifters in the Almost Ideal demand system," Economics Letters, Elsevier, vol. 70(1), pages 73-78, January.
    10. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-326, June.
    11. repec:aph:ajpbhl:2000:90:6:854-857_7 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gao, Zhifeng & Yu, Xiaohua & Lee, Jonq-Ying, 2013. "Consumer demand for diet quality: evidence from the healthy eating index," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 0(Issue 3).
    2. Greve, Jane & Heinesen, Eskil, 2015. "Evaluating the impact of a school-based health intervention using a randomized field experiment," Economics & Human Biology, Elsevier, vol. 18(C), pages 41-56.
    3. Dharmasena, Senarath & Davis, George & Capps, Oral, Jr., 2014. "Partial versus General Equilibrium Calorie and Revenue Effects Associated with a Sugar-Sweetened Beverage Tax," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 0(Number 2), pages 1-17.
    4. Harding, Matthew & Lovenheim, Michael, 2017. "The effect of prices on nutrition: Comparing the impact of product- and nutrient-specific taxes," Journal of Health Economics, Elsevier, vol. 53(C), pages 53-71.
    5. Garciá-Germán, Sol & Romeo, Alessandro & Magrini, Emiliano & Balilé, Jean, 2016. "The impact of food price shocks on weight loss: Evidence from the adult population of Tanzania," Department of Agricultural and Rural Development (DARE) Discussion Papers 260778, Georg-August-Universitaet Goettingen, Department of Agricultural Economics and Rural Development (DARE).
    6. Joan Gil & Guillem López Casasnovas & Toni Mora, 2013. "Taxation of unhealthy consumption of food and drinks: An updated literature review," Hacienda Pública Española, IEF, vol. 207(4), pages 119-140, December.
    7. Massimo Bordignon & Di Xiang & Lue Zhan, 2018. "Predicting the Effects of a Sugar Sweetened Beverage Tax in a Household Production Model," DISCE - Working Papers del Dipartimento di Economia e Finanza def075, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    8. Alberto Gago & Xavier Labandeira & Xiral López Otero, 2014. "A Panorama on Energy Taxes and Green Tax Reforms," Hacienda Pública Española, IEF, vol. 208(1), pages 145-190, March.
    9. Kumcu, Aylin & Okrent, Abigail M ., 2014. "Methodology for the Quarterly Food-Away-From-Home Prices Data," Technical Bulletins 184292, United States Department of Agriculture, Economic Research Service.
    10. Zhen, Chen & Brissette, Ian & Ruff, Ryan, 2013. "By Ounce or By Calorie: The Different Effects of Alternative Sugar-Sweetened Beverage Tax Strategies," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150194, Agricultural and Applied Economics Association.
    11. Papoutsi, Georgia & Nayga, Rodolfo & Lazaridis, Panagiotis & Drichoutis, Andreas, 2013. "Nudging parental health behavior with and without children's pestering power: Fat tax, subsidy or both?," MPRA Paper 52324, University Library of Munich, Germany.
    12. García-Altés, Anna, 2013. "Aportaciones de la economía del comportamiento en política sanitaria: Algunas notas en torno al ejemplo de la obesidad/Contributions of Behavioral Economics in Health Policy: Some Notes Around the Exa," Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 31, pages 445-454, Septiembr.
    13. Finkelstein, Eric A. & Zhen, Chen & Bilger, Marcel & Nonnemaker, James & Farooqui, Assad M. & Todd, Jessica E., 2013. "Implications of a sugar-sweetened beverage (SSB) tax when substitutions to non-beverage items are considered," Journal of Health Economics, Elsevier, vol. 32(1), pages 219-239.
    14. Rhodes, Charles, 2012. "A Dynamic Model of Failure to Maximize Utility in the Chronic Consumer Choice to Consume Foods High in Added Sugars," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124693, Agricultural and Applied Economics Association.
    15. repec:ags:jloagb:266965 is not listed on IDEAS
    16. Di Xiang & Lue Zhan & Massimo Bordignon, 2018. "A Reconsideration of the Sugar Sweetened Beverage Tax in a Household Production Model," CESifo Working Paper Series 7087, CESifo Group Munich.
    17. Radwan, Amr & Gil, José M., 2014. "On the Nexus between Economic and Obesity Crisis in Spain: Parametric and Nonparametric Analysis of the Role of Economic Factors on Obesity Prevalence," 88th Annual Conference, April 9-11, 2014, AgroParisTech, Paris, France 170341, Agricultural Economics Society.
    18. Muth, Mary K. & Sweitzer, Megan & Brown, Derick & Capogrossi, Kristen & Karns, Shawn A. & Levin, David & Okrent, Abigail & Siegel, Peter & Zhen, Chen, 2016. "Understanding IRI Household-Based and Store-Based Scanner Data," Technical Bulletins 234905, United States Department of Agriculture, Economic Research Service.
    19. Liu, Yaqin & Ferreira, Susana & Colson, Gregory & Wetzstein, Michael, 2013. "Obesity and Counseling," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149947, Agricultural and Applied Economics Association.
    20. Mandal, Bidisha & Powell, Lisa M., 2014. "Child care choices, food intake, and children's obesity status in the United States," Economics & Human Biology, Elsevier, vol. 14(C), pages 50-61.
    21. Arteaga, Julio Cesar & Flores, Daniel & Luna, Edgar, 2017. "The effect of a soft-drink tax in Mexico: a time series approach," MPRA Paper 80831, University Library of Munich, Germany.
    22. Lin, Biing-Hwan & Dong, Diansheng & Carlson, Andrea & Rahkovsky, Ilya, 2017. "Potential dietary outcomes of changing relative prices of healthy and less healthy foods: The case of ready-to-eat breakfast cereals," Food Policy, Elsevier, vol. 68(C), pages 77-88.
    23. Jou, Judy & Techakehakij, Win, 2012. "International application of sugar-sweetened beverage (SSB) taxation in obesity reduction: Factors that may influence policy effectiveness in country-specific contexts," Health Policy, Elsevier, vol. 107(1), pages 83-90.
    24. repec:eee:jfpoli:v:71:y:2017:i:c:p:86-100 is not listed on IDEAS

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ehbiol:v:9:y:2011:i:4:p:329-341. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/locate/inca/622964 .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.