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Grattan Institute's Case for Sugar Tax is Not Proven

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  • Jonathan Pincus

    (School of Economics, University of Adelaide)

Abstract

Duckett and Swerissen (2016) advocated a 40-cent tax per 100g of sugar in sugar-sweetened beverages (SSB), because the tax would reduce the cost burden on the non-obese. Duckett and Swerissen took these third party costs as indices of market failure. However, their distributional analysis is not an appropriate framework for the assessment of economic efficiency. Moreover, they did not quantify the casual mechanisms through which a small weight loss would appreciably lower the health costs and increase the employment of the obese. There may be an economic case for such a tax, but Duckett and Swerissen have not made it.

Suggested Citation

  • Jonathan Pincus, 2017. "Grattan Institute's Case for Sugar Tax is Not Proven," School of Economics and Public Policy Working Papers 2017-04, University of Adelaide, School of Economics and Public Policy.
    • Handle: RePEc:adl:wpaper:2017-04
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    References listed on IDEAS

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    1. Nomaguchi, Takeshi & Cunich, Michelle & Zapata-Diomedi, Belen & Veerman, J. Lennert, 2017. "The impact on productivity of a hypothetical tax on sugar-sweetened beverages," Health Policy, Elsevier, vol. 121(6), pages 715-725.
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    Cited by:

    1. Sainsbury, Emma & Magnusson, Roger & Thow, Anne-Marie & Colagiuri, Stephen, 2020. "Explaining resistance to regulatory interventions to prevent obesity and improve nutrition: A case-study of a sugar-sweetened beverages tax in Australia," Food Policy, Elsevier, vol. 93(C).
    2. Julio C. Arteaga & Daniel Flores & Edgar Luna, 2021. "The effect of a soft drink tax in Mexico: evidence from time series industry data," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 65(2), pages 349-366, April.
    3. I.Fazrakhmanov & M. Lukyanova & V. Kovshov & A. Farrakhetdinova & J. Putyatinskaya, 2018. "Economic Assessment and Strategic Potential of Agro Industries: The Case of Sugar Industry," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 239-254.
    4. repec:ers:journl:v:volumexxi:y:2018:i:issue4:p:239-254 is not listed on IDEAS
    5. 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.

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