Economic argument for sugar-sweetened beverage taxes

Tobacco taxes are widely considered to be the most effective intervention to reduce tobacco use, and by extension tobacco-related illness and death. Consumers often reduce their consumption of taxed products due to an increase in price. Further, taxes generate revenue, which can be used for further public health interventions. Obesity prevention advocates have identified sugar-sweetened beverage taxes as a potentially successful intervention to reduce consumption of these high-calorie products and to raise revenue for obesity prevention. Frank Chaloupka will explain the economic rationale for the taxation of sugar-sweetened beverages, followed by a discussion of research on the impact of prices on SSB consumption. He will explain the concept of price elasticity and how it affects demand for beverages. In addition, Dr. Chaloupka will describe findings from recent research he and his colleagues have done that examines the associations between existing state-level SSB taxes (largely applied as sales taxes) and weight outcomes, including body mass index (BMI) and obesity.