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  4. The Effects of Taxing Sugar-Sweetened Beverages across different Income Groups
 
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The Effects of Taxing Sugar-Sweetened Beverages across different Income Groups
File(s)
finalversion_May29 2013.pdf (780.2 KB)
Accepted version
Author(s)
Sharma, A
Hauck, K
Hollingsworth, B
Siciliani, L
Type
Journal Article
Abstract
This paper investigates the impact of sugar-sweetened beverages (SSB) taxes on consumption, bodyweight and tax burden for low-income, middle-income and high-income groups using an Almost Ideal Demand System and 2011 Household level scanner data. A significant contribution of our paper is that we compare two types of SSB taxes recently advocated by policy makers: A 20% flat rate sales (valoric) tax and a 20 cent/L volumetric tax. Censored demand is accounted for using a two-step procedure. We find that the volumetric tax would result in a greater per capita weight loss than the valoric tax (0.41 kg vs. 0.29 kg). The difference between the change in weight is substantial for the target group of heavy purchasers of SSBs in low-income households, with a weight reduction of up to 3.20 kg for the volumetric and 2.06 kg for the valoric tax. The average yearly per capita tax burden on low-income households is $17.87 (0.21% of income) compared with $15.17 for high-income households (0.07% of income) for the valoric tax, and $13.80 (0.15%) and $10.10 (0.04%) for the volumetric tax. Thus, the tax burden is lower, and weight reduction is higher under a volumetric tax
Date Issued
2014-06-04
Date Acceptance
2014-05-06
Citation
Health Economics, 2014, 23 (9), pp.1159-1184
URI
http://hdl.handle.net/10044/1/29064
DOI
https://www.dx.doi.org/10.1002/hec.3070
ISSN
1099-1050
Publisher
Wiley
Start Page
1159
End Page
1184
Journal / Book Title
Health Economics
Volume
23
Issue
9
Copyright Statement
This is the peer reviewed version of the following article: Sharma A., Hauck K., Hollingsworth B. and Siciliani L. (2014), THE EFFECTS OF TAXING SUGAR-SWEETENED BEVERAGES ACROSS DIFFERENT INCOME GROUPS, Health Econ., 23, pages 1159–1184,, which has been published in final form at https://dx.doi.org/10.1002/hec.3070. This article may be used for non-commercial purposes in accordance With Wiley Terms and Conditions for self-archiving.
Subjects
Social Sciences
Science & Technology
Life Sciences & Biomedicine
Economics
Health Care Sciences & Services
Health Policy & Services
Business & Economics
ECONOMICS
HEALTH CARE SCIENCES & SERVICES
HEALTH POLICY & SERVICES
sugar-sweetened beverages tax
soft drink
obesity
tax regressivity
censored demand
DEMAND SYSTEMS
FOOD
TAXES
HEALTH
HOUSEHOLDS
CONSUMPTION
IMPACT
PRICE
US
14 Economics
11 Medical And Health Sciences
Publication Status
Published
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