5 U.S. cities which imposed taxes on sugary drinks noticed costs rise and gross sales fall by 33%, in line with a brand new research.
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Justin Sullivan/Getty Photos
5 U.S. cities which imposed taxes on sugary drinks noticed costs rise and gross sales fall by 33%, in line with a brand new research.
Justin Sullivan/Getty Photos
Gross sales of sugary drinks fell dramatically throughout 5 U.S. cities, after they applied taxes concentrating on these drinks – and people adjustments have been sustained over time. That is in line with a research printed Friday within the journal JAMA Well being Discussion board.
Researchers say the findings present extra proof that these controversial taxes actually do work. A declare the beverage trade disputes.
The cities studied have been: Philadelphia, Seattle, San Francisco and Oakland, Calif., and Boulder, Colo. Taxes ranged from 1 to 2 cents per ounce. For a 2-liter bottle of soda, that comes out to between 67 cents to $1.30 additional in taxes.
Whereas prior research have seemed on the impression of soda taxes, they often studied one metropolis at a time. This new research seemed on the composite impact of the taxes in a number of cities to get an thought of what would possibly occur if these taxes have been extra widespread – or scaled to a state or nationwide stage, says Scott Kaplan, an economics professor on the U.S. Naval Academy and the research’s lead writer.
Kaplan and his colleagues discovered that, on common, costs for sugar-sweetened drinks went up by 33.1% and purchases went down by principally the identical quantity – 33%.
“In different phrases, for each 1% improve in worth, we discover that purchases fall by about 1%,” says Kaplan.
So when folks needed to pay extra for sugary drinks, they lowered their purchases – and the impact was massive and sustained.
However are folks merely shopping for their sugary drinks elsewhere the place it is cheaper?
Kaplan notes, prior analysis findings on that query have been contradictory. Some research that targeted on Philadelphia’s sugary drink tax have discovered that, whereas gross sales of sugary drinks dropped considerably within the metropolis, they really went up in surrounding areas – indicating folks have been touring to keep away from the taxes. Different research have discovered no such adjustments. Within the new research, Kaplan and his colleagues did not discover proof that buyers have been touring to make cross-border purchases.
Jennifer Pomeranz, an affiliate professor on the College of International Public Well being at New York College, says taxes that concentrate on sugary drinks are good public well being coverage as a result of these drinks don’t have any dietary worth, however they’re linked with diet-related ailments.
As Kaplan notes, “sugar sweetened drinks make up 1 / 4 of all of the added sugar we see within the common grownup American weight loss program. And that is a very massive quantity.”
An excessive amount of added sugar is linked to a bunch of poor well being outcomes, together with diabetes, weight problems and coronary heart illness. Sugary drink taxes are designed to discourage purchases to curb consumption.
In 2019, each the American Coronary heart Affiliation and the American Academy of Pediatricians formally endorsed soda taxes as a great way to cut back the dangers of childhood weight problems. And simply final month, the World Well being Group referred to as on international locations to extend taxes on sugary drinks as a technique to promote more healthy diets.
Whereas the U.S. noticed a handful of main cities move these taxes beginning a couple of decade in the past, the soda trade poured tens of millions of {dollars} into combating these efforts. In some states, opponents handed legal guidelines that principally stripped localities of the ability to have the ability to move soda taxes, and the motion principally stalled, says Pomeranz. The brand new findings are “nice,” she says of the brand new research. “I’m pondering it may renew curiosity.”
In an announcement to NPR, the American Beverage Affiliation mentioned that the trade’s technique of providing customers extra selections with much less sugar is working, noting that just about 60 p.c of drinks bought at the moment have zero sugar.
“The energy that individuals get from drinks has decreased to its lowest stage in many years,” the ABA mentioned. The trade group mentioned that sugary drink taxes are unproductive and damage customers.
This story was edited by Jane Greenhalgh
