The increasing global prevalence of non-communicable diseases (NCDs), including type II diabetes, cardiovascular disease, and obesity, represents a major public health challenge. This chapter reviews the effectiveness of price-based policy interventions, with a focus on taxes on sugar-sweetened beverages (SSBs), as a strategy to address these health concerns. By analyzing the evidence from simulation-based studies and real-world implementation, the chapter explores the application of economic theory to understand consumer behavior and the potential impacts of SSB taxes. Key considerations include the price sensitivity of SSB consumption, the substitution effects—both desirable and undesirable—on other food and beverage choices, and the distributional consequences across income levels and age groups. Additionally, the chapter evaluates the health benefits, such as reductions in obesity and chronic disease rates, as well as the economic benefits stemming from lower healthcare expenditures. The evidence indicates that well-implemented SSB taxes can effectively reduce consumption, improve population health outcomes, and generate significant government revenue, positioning them as a promising tool in the global effort to combat the NCD epidemic.

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The Economics of a Sin Tax on Sugar-Sweetened Beverages

  • Anurag Sharma,
  • Kompal Sinha

摘要

The increasing global prevalence of non-communicable diseases (NCDs), including type II diabetes, cardiovascular disease, and obesity, represents a major public health challenge. This chapter reviews the effectiveness of price-based policy interventions, with a focus on taxes on sugar-sweetened beverages (SSBs), as a strategy to address these health concerns. By analyzing the evidence from simulation-based studies and real-world implementation, the chapter explores the application of economic theory to understand consumer behavior and the potential impacts of SSB taxes. Key considerations include the price sensitivity of SSB consumption, the substitution effects—both desirable and undesirable—on other food and beverage choices, and the distributional consequences across income levels and age groups. Additionally, the chapter evaluates the health benefits, such as reductions in obesity and chronic disease rates, as well as the economic benefits stemming from lower healthcare expenditures. The evidence indicates that well-implemented SSB taxes can effectively reduce consumption, improve population health outcomes, and generate significant government revenue, positioning them as a promising tool in the global effort to combat the NCD epidemic.