The effect of sugar taxation on sugar consumption

Abstract

This thesis studies the impact of sugar taxation on the consumption of sugar. This is done in three different ways, first by looking at the direct effect of sugar taxation on the consumption of sugar, secondly by looking at the effect of sugar taxation on the consumption of sugar sweetened beverages and lastly it looks at which tax form is the most effective. This research has been conducted on 22 countries that have implemented a sugar tax in the period 2004 till 2019 and uses both an event study as well as random effects model. The study finds that sugar taxation does not have a direct effect on the consumption of sugar, but it shows that sugar taxation does have a significant negative effect on the amount of sugar sweetened beverages that is consumed. At last, it finds in both an empirical as well as descriptive way that a specific excise tax is the most effective tax form.