a column by Pierre Dubois, Rachel Griffith and Martin O'Connell for VOX: CEPR’s Policy Portal
A growing number of jurisdictions have adopted taxes on sugary drinks to help combat excessive sugar consumption. This column simulates the introduction of a volumetric tax on sugary soda in Britain to examine how well targeted such taxes are. The simulated tax leads young people to reduce the amount of sugar they purchase via soda by around 80% more than the average consumer, but is less effective at targeting people with a high-sugar diet.
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