Report Publish Date: February 2, 2021

This journal article describes a study simulating the effects of a sugar-sweetened (SSB) beverage tax on household purchases of soda and other sweetened drinks. 

Primary Takeaways

The authors found that households that buy a lot of sugar-sweetened drinks are less affected by price changes than families who don’t buy a lot of sugary drinks.

At the same time, if a penny-per-ounce excise tax on sugary drinks were in place, the authors estimate households who buy a lot of them would have a bigger reduction in their purchases than households who don’t buy a lot of sugary drinks. In the same scenario, SNAP eligible households reduced their purchases of sugary drinks much more than higher income households.

The authors also found that households with the least resources benefit the most from a simulated policy combining sugar-sweetened beverage taxes with fruit and vegetable subsidies for low-income families.

Overview and Objectives

Proponents of taxing the purchase of sugary drinks say these taxes will help reduce people’s consumption of unhealthy drinks, as well as reducing obesity and its effects and boosting health. But others say sugar-sweetened beverage taxes are regressive and would burden low-income households the most. The authors wanted to know how taxing sugary drinks would affect households differently depending on how much sugar-sweetened beverages they drink. The researchers also wanted to know whether pairing the tax with fruit and vegetable subsidies would mitigate negative effects. 

Hypothesis or Approach 

“Our primary hypothesis is that the price response is not uniform across households at different points along the SSB purchase distribution,” the authors write. They used data from the 2010–2014 Nielsen Homescan Panel, which tracks consumer food and drink purchases, to model household purchases of sugary drinks and fruits and vegetables. 

How This Influences Change

The authors’ findings could help public health advocates and policymakers design policies that are more likely to achieve healthier outcomes for target groups.