A new study finds that soda taxes in five U.S. cities have led to a significant decrease in sales of sugary drinks. The study, published in the journal JAMA Health Forum, found that sales of sugary drinks dropped by about one-third in cities such as Boulder, Colorado; Philadelphia; Oakland, California; Seattle and San Francisco after the implementation of soda taxes.
The study also revealed that the taxes, which ranged from 1 to 2 cents per ounce, led to a corresponding increase in prices of sugar-sweetened beverages (SSB). This resulted in a 33.1% increase in price and a 33.0% decrease in volume, according to the researchers.
Lead author Scott Kaplan, an economics professor at the U.S. Naval Academy, told NPR that the findings demonstrate that SSB excise taxes are an effective policy tool to help consumers cut down on their sugar intake. Previous studies have found that a 15% to 20% increase in price or decrease in consumption of sugary drinks led to significant health benefits, including reductions in heart disease, strokes, diabetes and obesity.
The authors of the study also noted that soda taxes may prove cost-effective by reducing medical costs to treat diseases caused by consuming too much sugar. However, the beverage industry has opposed the taxes, arguing that they limit consumer choice and do not necessarily lead to improved health outcomes.
The American Beverage Association, an industry trade group, has stated that taxes won’t make people healthier, just poorer, and that free market forces have incentivized companies to offer reduced sugar or sugar-free options to consumers. Despite the industry’s opposition, the study’s findings suggest that soda taxes could have significant public health benefits.