Price Elasticity of Sugar-Sweetened Beverage Consumption and Potential Effectiveness of Tax Policy

Public health policy aims to reduce unhealthy behaviors while promoting positive health outcomes. To address the harmful impact of sugar-sweetened drinks, a tax policy has been introduced to reduce their consumption. The policy seeks to discourage people from drinking these liquids by implementing taxes. However, policymakers need to understand the price elasticity of sugar-sweetened beverages (SSB) intake concerning its potential effectiveness in decreasing SSB consumption. This paper examines the existing literature on the price elasticity of SSB intake and the potential utility of tax policy to reduce SSB intake. Various quantitative and qualitative studies have shown that the consumption of SSB is affected by its price, which means that implementing taxes can be an effective way to reduce SSB consumption. The paper also explores further considerations, such as the efficacy of other interventions, including educational strategies, and the potential public health and economic benefits of implementing SSB taxation. This study shows that, from a financial and public health standpoint, tax policy has the potential to be a feasible intervention for reducing SSB intake