The study was a response to public concern over obesity rates in the United States and the "overconsumption of added sugars, largely from sodas and fruit drinks." The "Institute of Medicine of the National Academies of Sciences and some State and local Government officials" have suggested a "tax on caloric sweetened beverages" according to the Report Summary.
The study "analyzed the effects of a hypothetical tax on caloric sweetened sodas, fruit drinks, sports and energy drinks, and powdered mixes." The study was conducted by using two national data sets, "grouping beverages into eight categories based on caloric content," and specifying a "demand system" to "estimate how beverage purchasing would change as a result of a price increase for caloric sweetened beverages." In addition, the study used a 3,500 calorie to 1 pound of body fact ratio to estimates changes in weight and obesity.
The study found that "consumers facing a higher price induced by a tax would react by adjusting their choices among alternative beverages, such as diet drinks, bottled water, juice, coffee/tea, or milk." As a result, adults and children would consume less calories and reduce the prevalence of overweight and obese adults and children in the United States.
For a description of the ERS Report, click here.
To read the Report Summary, click here.
To read the full text of the Report, click here.
Posted: 07/06/2010
