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International application of sugar-sweetened beverage (SSB) taxation in obesity reduction: Factors that may influence policy effectiveness in country-specific contexts

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  • Jou, Judy
  • Techakehakij, Win

Abstract

Sugar-sweetened beverage (SSB) taxation is becoming of increasing interest as a policy aimed at addressing the rising prevalence of obesity in many countries. Preliminary evidence indicates its potential to not only reduce obesity prevalence, but also generate public revenue. However, differences in country-specific contexts create uncertainties in its possible outcomes. This paper urges careful consideration of country-specific characteristics by suggesting three points in particular that may influence the effectiveness of a volume-based soft drink excise tax: population obesity prevalence, soft drink consumption levels, and existing baseline tax rates. Data from 19 countries are compared with regard to each point. The authors suggest that SSB or soft drink taxation policy may be more effective in reducing obesity prevalence where existing obesity prevalence and soft drink consumption levels are high. Conversely, in countries where the baseline tax rate is already considered high, SSB taxation may not have a noticeable impact on consumption patterns or obesity prevalence, and may incur negative feedback from the beverage industry or the general public. Thorough evaluation of these points is recommended prior to adopting SSB or soft drink taxation as an obesity reduction measure in any given country.

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  • 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.
  • Handle: RePEc:eee:hepoli:v:107:y:2012:i:1:p:83-90
    DOI: 10.1016/j.healthpol.2012.05.011
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    3. Irz, Xavier & Leroy, Pascal & Réquillart, Vincent & Soler, Louis-Georges, 2015. "Economic assessment of nutritional recommendations," Journal of Health Economics, Elsevier, vol. 39(C), pages 188-210.
    4. Gangl, Selina, 2021. "Do soda taxes affect the consumption and health of school-aged children? Evidence from France and Hungary," VfS Annual Conference 2020 (Virtual Conference): Gender Economics 224577, Verein für Socialpolitik / German Economic Association, revised 2021.
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    7. Juan Carlos Caro & Shu Wen Ng & Ricardo Bonilla & Jorge Tovar & Barry M Popkin, 2017. "Sugary drinks taxation, projected consumption and fiscal revenues in Colombia: Evidence from a QUAIDS model," PLOS ONE, Public Library of Science, vol. 12(12), pages 1-16, December.
    8. Colchero, M.A. & Salgado, J.C. & Unar-Munguía, M. & Hernández-Ávila, M. & Rivera-Dommarco, J.A., 2015. "Price elasticity of the demand for sugar sweetened beverages and soft drinks in Mexico," Economics & Human Biology, Elsevier, vol. 19(C), pages 129-137.
    9. Peter Lloyd & Donald MacLaren, 2019. "Should We Tax Sugar and If So How?," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 52(1), pages 19-40, March.
    10. Zhang, Ying & Li, Ruotong & Zhao, Qiran & Fan, Shenggen, 2023. "The impact of peer effect on students' consumption of sugar-sweetened beverages- instrumental variable evidence from north China," Food Policy, Elsevier, vol. 115(C).
    11. Maria Eugenia Bonilla-Chacin & Roberto Magno Iglesias & Agustina Sara Suaya & Claudia Trezza & Claudia Macias, 2016. "Learning from the Mexican Experience with Taxes on Sugar-Sweetened Beverages and Energy-dense Foods of Low Nutritional Value: Poverty and Social Impact Analysis," Health, Nutrition and Population (HNP) Discussion Paper Series 106595, The World Bank.
    12. Alberto Pench, 0. "Time Allocation and Snacks and Sugar Sweetened Beverages Taxation," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 0, pages 1-24.
    13. Sharon S Nakhimovsky & Andrea B Feigl & Carlos Avila & Gael O’Sullivan & Elizabeth Macgregor-Skinner & Mark Spranca, 2016. "Taxes on Sugar-Sweetened Beverages to Reduce Overweight and Obesity in Middle-Income Countries: A Systematic Review," PLOS ONE, Public Library of Science, vol. 11(9), pages 1-22, September.
    14. Grupo de Economía de la Salud & Jairo Humberto Restrepo, 2016. "Actualidad y perspectivas del sistema pensional colombiano," Observatorio Seguridad Social 16169, Grupo de Economía de la Salud.
    15. Irz, Xavier & Leroy, Pascal & Réquillart, Vincent & Soler, Louis-Georges, 2016. "Welfare and sustainability effects of dietary recommendations," Ecological Economics, Elsevier, vol. 130(C), pages 139-155.
    16. Zhai, Tianchang & Li, Lei & Wang, Jingjing & Si, Wei, 2022. "Will the consumption tax on sugar-sweetened beverages help promote healthy beverage consumption? Evidence from urban China," China Economic Review, Elsevier, vol. 73(C).
    17. Alberto Pench, 2020. "Time Allocation and Snacks and Sugar Sweetened Beverages Taxation," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 6(3), pages 469-492, November.
    18. Rosella Levaggi & Carmen Marchiori & Paolo M. Panteghini, 2022. "Lifestyle taxes in the presence of profit shifting," Journal of Economics, Springer, vol. 137(1), pages 81-96, September.
    19. Caro, Juan Carlos & Ng, Shu Wen & Taillie, Lindsey Smith & Popkin, Barry M., 2017. "Designing a tax to discourage unhealthy food and beverage purchases: The case of Chile," Food Policy, Elsevier, vol. 71(C), pages 86-100.
    20. Young, Amanda & James, Kieran & Hassan, Abeer, 2022. "The role of regressive sugar tax in the soft drink industry levy (SDIL): A Marxist analysis," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 88(C).
    21. Thavorncharoensap, Montarat, 2017. "Effectiveness of Obesity Prevention and Control," ADBI Working Papers 654, Asian Development Bank Institute.
    22. Kuili Zhang & Bing Ran, 2022. "Active Health Governance—A Conceptual Framework Based on a Narrative Literature Review," IJERPH, MDPI, vol. 19(4), pages 1-14, February.
    23. Bonnet, Céline & Réquillart, Vincent, 2016. "The effects of taxation on the individual consumption of sugar-sweetened beverages," TSE Working Papers 16-638, Toulouse School of Economics (TSE), revised Jun 2021.
    24. Zhai, Tianchang & Wang, Jingjing & Li, Lei & Si, Wei, 2021. "Based on Volume or Sugar Content: Comparison of Consumer Welfare Effects of Different Consumption Tax Strategies for Sugar-Sweetened Beverages——Evidence from Urban China," 2021 Conference, August 17-31, 2021, Virtual 315103, International Association of Agricultural Economists.

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