Headline : Are California soda taxes effective?

Read more from the original article on here at ucanr.edu.

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Study finds that the taxes raise revenues, but may not decrease sales

California is home to four of the eight active soda taxes in the United States, but are these policies successfully decreasing the consumption of sugary beverages in these cities? New research out of UC Davis suggests that, in most cases, these soda taxes did not reduce retail sales. Further, while they successfully raised revenues to fund programs to reduce sugary beverage consumption and mitigate their negative health effects, a disproportionate amount of this revenue was generated from lower-income households.

With over $2 trillion in annual worldwide health-care costs resulting from the obesity epidemic, many municipalities are searching for ways to reduce its adverse effects on their citizens and economies. The World Health Organization (WHO) recommends a tax on sugar-sweetened beverages (e.g., sodas) to reduce the consumption of sugary beverages and prevent obesity-associated diseases. To assess whether this approach has been successful at a local level in California, UC Davis economists analyzed the price and sales effects of a one-cent-per-fluid-ounce sales tax on sugar-sweetened beverages taxes in three Bay Area cities: Berkeley, Oakland and San Francisco.

Co-author of the study Richard Sexton, distinguished professor in the Department of Agricultural and Resource Economics at UC Davis, said they found that “California soda taxes in the Bay Area communities have generally had little impact on sales of sugary beverages.” 

Read more from the original article on here at ucanr.edu.

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