RESEARCH REPORT The Pros and Cons of Taxing Sweetened.
The researchers raised the price of sugary soft drinks in the university canteen by 35 percent for a four week period. Regular soft drinks consumption declined by 26 percent during the price increase phase (Food Product Design, 2010). While sales of regular soft drinks fell, sales of diet soft drinks and coffee increased by 20 percent (Thomas, 2010). This study shows that the price increase of.
The recent announcement of a tax on sugary drinks in England comes with much public support, and the case is made more compelling by recent evidence from Mexico that taxing drinks reduces consumption, particularly among the poor. But obesity won’t be cracked by tax alone. Adding nudges to taxes would likely help, but the acceptability of nudging has, until now, been largely unknown.
The fact that sugary drinks have a relatively elastic demand in general also justifies the tax for the aforementioned reason. (1) A study done by M.A Colchero and J.C Salgado concluded that on average the price elasticity for soft drink was 1.06-1.16, meaning a 10% increase in price would result in an 11.6% decrease in consumption.
A major study examining ways of stemming the rising rates of non-communicable diseases (NCDs) worldwide has concluded that taxes on unhealthy products such as sugary soft drinks, alcohol and.
As cities and states seek to address rising rates of heart disease, type 2 diabetes and obesity, many are looking to sugary drink taxes. Communities around the country are considering these taxes to raise revenues to address health, education and other important community needs; reduce consumption of an unhealthy product; and call attention to the health risks of sugary drinks.
Yes,there should be a tax on sugary drinks. Yes,there should be a tax on sugary drinks.If there was a tax on sugary drinks people might be more aware of the large amount they are consuming.This would also work to add money to the public roles which be used on programs like diabetes prevention that could save a lot more money in the long run.
An industry trade publication reported even larger reductions: as prices of carbonated soft drinks increased by 6.8%, sales dropped by 7.8%, and as Coca-Cola prices increased by 12%, sales dropped.