| Literature DB >> 27669014 |
Sharon S Nakhimovsky1, Andrea B Feigl2, Carlos Avila1, Gael O'Sullivan1, Elizabeth Macgregor-Skinner1, Mark Spranca3.
Abstract
BACKGROUND: The consumption of sugar-sweetened beverages (SSBs), which can lead to weight gain, is rising in middle-income countries (MICs). Taxing SSBs may help address this challenge. Systematic reviews focused on high-income countries indicate that taxing SSBs may reduce SSB consumption. Responsiveness to price changes may differ in MICs, where governments are considering the tax. To help inform their policy decisions, this review compiles evidence from MICs, assessing post-tax price increases (objective 1), changes in demand for SSBs and other products, overall and by socio-economic groups (objective 2), and effects on overweight and obesity prevalence (objective 3). METHODS ANDEntities:
Year: 2016 PMID: 27669014 PMCID: PMC5036809 DOI: 10.1371/journal.pone.0163358
Source DB: PubMed Journal: PLoS One ISSN: 1932-6203 Impact factor: 3.240
Fig 1Logical Pathway from Taxing SSBs to Public Health Impact.
Search Algorithm.
| Tax OR taxes OR taxing OR taxation OR price OR prices OR pricing OR economic OR financial OR fiscal OR penalty OR penalties | |
| Sugar OR sugar OR sweetened OR carbonated OR soft OR sucrose OR soda OR sodas OR cola OR colas OR drink OR drinks OR beverage OR beverages | |
| Intake OR consumption OR demand OR quantity OR quantities OR sale OR sales OR habit OR habits OR behavior OR diet OR nutrition OR calorie OR calories OR elasticity OR elasticities OR weight OR overweight OR obese OR obesity OR body mass index | |
Fig 2Documentation of Study Search and Selection.
Tabular Summary of Studies Included in the Systematic Review.
| • Authors, Year | Objectives | Data on SSB consumption and study population | 1. Country | Independent and outcome variable | Consumption (and health status/risk factor) related outcome | Conclusions | ||
|---|---|---|---|---|---|---|---|---|
| • Colchero et al, 2016 | Estimate changes in the purchasing of taxed and untaxed beverages since implementation of Mexico's 2014 1 peso per liter specific excise tax (~9/10%) on nondairy SSBs | • Commercial, unbalanced panel data with a sample of 6,253 households from 53 cities, representing 63% of Mexico's population and providing 205,112 household-month observations | 1. Mexico | • Prices of purchased products | • Compared to the counterfactual, purchases of taxed beverages were 6.1% (12 mL per capita per day (PPPD) | Purchases of taxed items decreased in the short term (1 year) at an increasing rate. Further monitoring of the tax's effect over a longer period, including changes in packaging and pricing by manufacturers and retailers, is needed. | ||
| • Grogger, 2015 | Observe how prices of soda and other beverages responded to Mexico's 2014 1 peso per liter specific excise tax (~9/10%) on nondairy SSB to determine whether the tax was passed on to consumers and to understand the tax's effect on the consumption of beverages | • Mexico's Consumer Price Index with retail prices from 46 cities in Mexico | 1. Mexico | • Time (before and after tax implementation began) | • After the first 15 months of the tax, prices of soda increased by 12% (1.32 | Results show the tax on soda was over-shifted to consumers, indicating that the tax likely had a "relatively powerful effect." There was little evidence of substitution to other caloric beverages, which suggests a drop in consumption of soda was not balanced by increased consumption of other drinks and the tax may in fact reduce total caloric consumption. | ||
| • Ritter Burga, 2016 | "Determine whether a reduction in the price of carbonated soft drinks (CSDs) increases obesity rates, through the increase in CSD consumption" | • Households whose women (female head or wife of head) are between ages of 19 to 49 years and were sampled in the nationally representative 1997 and 2001 National Household Survey (ENAHO) of Peru (n = 19,658) | 1. Peru | • Six-month average real index price of CSD | • The 10% drop in six-month average prices of CSD 1997–2001 led to a 90 mL per person per month (PPPM) | Results demonstrate "a causal relationship between the decrease in CSD price and the increase in obesity prevalence" through increased CSD consumption. They also indicate that the population is responsive to changes in price of CSD, without risk of substitution to milk and alcohol, making taxes a promising policy option to reduce obesity. However, a price increase in CSD may also increase diarrhea prevalence among households without access to piped water, indicating the policy may not avoid troubling side effects for health equity. | ||
| • Barquera et al., 2008 | Increase understanding of patterns in consumption of beverages, including but not limited to SSBs, by Mexican adolescents and adults | • Three nationally representative Mexican HouseholdIncome and Expenditure Surveys conducted in 1989 (n = 11,501), 1998 (n = 10,919), and 2006 (n = 20,349). | 1. Mexico | • Prices as reported in survey data | • Own-PE increased over time, from -0.61 | Own-PE of soda and whole milk are "modest but increasing," with soda more responsive to price change than whole milk. Cross-PEs of soda indicate that increasing consumption of other caloric beverages would be smaller than the decrease in soda consumption. This indicates that a tax may contribute to reducing obesity. | ||
| • Basu et al, 2014 | Estimate potential long-term health effects of taxing SSB in India, including calculations of own- and cross-PE. | • The nationally representative Indian National Sample Survey for 2009–2010, with 100,855 households | 1. India | • Prices as reported in survey data | • SSB own-PE was -0.94 | Taxing SSBs is a promising intervention. In relation to other interventions, this tax may have a more sustained impact on overweight, obesity, and type 2 diabetes incidence in India, with health benefits reaching rural and poor populations. | ||
| • Claro et al., 2012 | Quantify the effect of prices on consumption of SSBs in Brazil to contribute to discussion on applicability of SSB tax in middle income countries | • Individual and economic data from the Households Budget Survey 2002–2003, with 443 strata of households, composed of 48,470 households that were "geographically and socioeconomically homogeneous" | 1. Brazil | • Mean prices of SSBs (reals) per 1,000 kcals); and mean income (reals per person per month) | • Results show that SSB own-PE is -0.85 | Taxing SSBs is a promising intervention in Brazil; results indicate it could contribute to reducing consumption of SSBs, especially for poorer populations. | ||
| • Colchero et al., 2015 | Estimate own- and cross-PE of demand for SSB in Mexico between 2006 and 2010 | • The 2006, 2008, and 2010 Mexican National Income and Household Expenditure Surveys with 19,512, 27,994, and 25,805 households in the samples, respectively. | 1. Mexico | • Prices as reported in survey data | • Across study period, SSB own-PE was -1.16 | "Given high rates of consumption of SSB/soft drinks and of overweight and obesity, a tax could reduce consumption and have a positive effect on health." | ||
| • Manyema et al, 2014 | "Estimate the effect of a 20% tax on SSBs on the prevalence of and obesity among adults in South Africa" | • Individual data from the 2012 South African Health and Nutrition Examination Survey, which is based on data from 25,532 individual respondents | 1. South Africa | • 20% tax on SSB (with 90%, 100%, and 110% pass-through rate variations) | "A 20% tax is predicted to reduce energy intake by about 36 kJ per day (95% CI 9–38 kJ). Obesity is projected to reduce by 3.8% (95% CI 0.6–7.1%) in men and 2.4% (95% CI: 0.4–4.4%) in women." | Taxing has promise as an effective intervention, in the context of a "multi-faceted effort to prevent obesity" | ||
| • Paraje, 2016 | Estimate own-PEs for SSBs in Ecuador to predict effect of a tax on SSBs | • Sample of 39,434 households from the 2011–2012 National Urban and Rural Household Income and Expenditures Survey | 1. Ecuador | • Expenditure per liter (proxy for SSB prices) | • Own-PE was -1.2 | Estimates suggest that taxing SSBs in Ecuador could reduce consumption of SSBs and contribute to public health objectives. | ||
*Significantly different from zero at the 5% level.
** significantly different from zero at the 1% level
† significantly different from zero at the 90% level.
Quality Assessment of Studies.
| Study Type (1 highest quality, 2 lowest quality) | Quasi-experimental, observational studies (1) | Non-experimental, observational studies and modeling studies (2) | |||||||
|---|---|---|---|---|---|---|---|---|---|
| Author, Year; Country | Colchero, 2016; Mexico | Grogger, 2015; Mexico | Ritter Burga, 2016; Peru | Barquera, 2008; Mexico | Basu, 2014; India | Claro, 2012; Brazil | Colchero, 2015; Mexico | Manyema, 2014; South Africa | Paraje, 2016; Ecuador |
| Is the study design prospective? | √ | - | - | - | - | - | - | - | - |
| How many time points does the study include and over what time period? | 36/36 (months) | 51/51 (months) | 2/5 (years) | 3/18 (years) | 1/1 (years) | 1/1 (years) | 3/5 (years) | 1/1 (years) | 1/1 (years) |
| Does the data include all SSBs consumed, or just a subset? | - | - | - | √ | √ | - | √ | √ | |
| Do price and consumption data come from the same population? | √ | √ | √ | √ | √ | √ | √ | - | |
| Does the study consider potential substitution to other products? | √ | √ | √ | √ | √ | - | √ | √ | |
| Are the effects for each SSB product analyzed separately? | √ | √ | - | √ | √ | - | √ | - | |
| Does the study assess an actual tax? | √ | √ | - | - | - | - | - | - | - |
*Uses meta-analysis for own- and cross-PE estimates
**study considers substitution to non-alcoholic beverages, but not to alcoholic beverages and/or food products
Fig 3Own-Price Elasticities of SSBs and Change in kJ PPPD Given a 10% Price Increase.
*Change in kJ PPPD given a 10% price change was calculated from study estimates using unit conversions based on the identities and assumptions presented in the methods section; **estimates come from the following studies listed as: author, (year of study), country in (year of estimate): 1 -Andreyeva et al. (2010) United States 1938–2007 [47]; 2—Escobar (2012) Global 2000–2013 [25]; 3—Colchero (2016) Mexico in 2015 [35]; 4—Ritter Burga (2016) Peru 1997–2001 [34]; 5—Barquera (2008) Mexico in 2006; 6—Barquera (2008) Mexico in 1998; 7—Barquera (2008) Mexico in 1989 [36]; 8 –Basu (2014) India 2014–2023 [40]; 9—Claro (2012) in 2003 [39]; 10—Colchero (2015) Mexico across 2006, 2008, and 2010 [42]; 11—Manyema (2014) South Africa in 2012 [17]; 12—Paraje (2016) Ecuador in 2012 [44]; ***findings based on observed increase in prices of soda; †missing estimates: Colchero (2016) results do not allow for a precise estimate of own-PE [35]; Barquera (2008) only provided analysis B estimates for 2006 data [36]; Colchero (2015) does not include baseline estimates of SSB consumption or other estimates needed for standardization [42]; Manyema (2014) [17] uses meta-analysis estimates for own-PE from Escobar (2012) [25], presented at the top of the figure; Grogger (2015) [41] was not included as its estimates do not include own-PE estimates and do not allow for standardization.
Changes in Consumption of Other Foods and Beverages Given Changed Prices of SSBs.
| Study Type | • Author, Year | % increase in price of | Substitutes: (Demand increases) | Complements: (Demand decreases) | No effect detected |
|---|---|---|---|---|---|
| Meta-analysis | • Escobar, 2012 | SSBs | • Fruit Juice: 0.39 (0.19) | • Diet drink: -0.42 (0.15) | • Milk |
| 1 | • Grogger, 2015 | Sugary soda | • Other drinks with added sugar: 0.63 (0.23) | • Milk: -0.15 (0.04) | • Water without added sugar |
| 1 | • Ritter Burga, 2016 | Soda (sugary and diet) | • Food prepared away from home: - 0.07 (0.03) | • Milk | |
| 2 | • Barquera, 2008 | Sugary soda | • Milk: 0.052 (0.01) | • Sweet drinks: -0.122 (0.01) | |
| 2 | • Basu, 2014 | SSBs (sugary soda, juice) | • Milk: 0.49 (0.02) | • Coffee | |
| 2 | • Colchero, 2015 | SSBs (sugary soda, juice) + fresh juices | • Milk: 0.19 (0.02) | • Candies: -0.44 (0.01) |
Estimate (standard error); The following studies are not included in this table: Colchero (2016) because it does not have separate estimates for each non-taxed beverage studied [35], Paraje (2016) because it does not look at substitution effects in a comparable way [44], and Manyema (2012) [17] because it uses meta-analysis estimates for cross-PE from Escobar (2012) [25], presented in the first column
*quasi-experimental studies, coded 1, are considered the highest quality; non-experimental and modeling studies, coded 2, are considered of lower quality
**study estimates changes in price of taxed and untaxed goods relative to 2013 (before the tax was implemented) rather than cross-PEs. The unit of estimates from this study is: change in the product price (in pesos) in 2014 relative to pre-tax the pre-tax price
***Price changes are no longer significant in 2015
†findings are based on an observed increase in the prices of carbonated soft drinks and the unit for estimates presented is liters per month per person given a 10% increase in SSB prices
††estimate presented is a cross-PE for the good listed in the third column, relative to SSBs.
Change in Obesity and Overweight Outcomes Given Changes in the Price of SSBs.
| Study Type | Author, Year; Country | Product | Change in price | • Outcome | Population | Effect | Confidence Level |
|---|---|---|---|---|---|---|---|
| 1 | Ritter Burga, 2016; | Soda | 10% average | • Obesity prevalence | Women 19–49 years old | 0.87 (4.76) | p < 0.10 |
| 1 | Ritter Burga, 2016; | Soda | 10% average | • BMI | Women 19–49 years old | 0.12 (0.07) | p < 0.10 |
| 2 | Basu, 2014; India | SSBs | 20% price | • Overweight and obesity prevalence | Full population | -3 (1.1) | p < 0.05 |
| 2 | Manyema, 2014; South Africa | SSBs | 20% price | • Obesity prevalence | Full population | -3.1 (2.9) | p < 0.05 |
(Standard Error)
*Quasi-experimental studies, coded 1, are considered the highest quality; non-experimental studies, coded 2, are considered of lower quality
**findings based on observed increase in the prices of soda
***impact modeled over a 10 year period (2014–2023).
Summary of Key Findings.
| • Prices of sugary soda increased by more than the rate of the imposed tax in Mexico, ensuring a change in the relative prices faced by consumers. Price increases of sugary fruit drinks were smaller and not sustained. These patterns generally align with other studies from Mexico, Denmark, France, and the United States (U.S.). |
| • Own-PE estimates for SSB products ranged from -0.6 to -1.2 (median of -0.95). Because this range is slightly lower than a global meta-analysis and similar to a pooled estimate from the U.S., it does not definitively show whether populations in MICs are more or less responsive to price changes of SSBs relative to populations in high-income countries. It does indicate that any differences are likely not large. |
| • Of the three studies that estimate the effect of changing price on the prevalence of obesity or obesity and overweight, two found a significant change at the 95% confidence level and one at the 90% conference level. While the studies come to relatively consistent conclusions, two of them were modeling studies, and relied on many assumptions, while the quasi-experimental study was based on an observed price decrease which may not have the same magnitude of effect as a price increase. |
| • The number and quality of studies from MICs were insufficient to make definitive conclusions about the effectiveness of the tax. |
Policy Recommendations Based on Key Findings.
| 1. | The increase in SSB prices required to halt the increase in the prevalence of overweight and obesity varies across MICs, with most requiring at least a 20% increase. For permanent change, the tax needs to be implemented in coordination with other obesity prevention interventions. |
| 2. | More empirical research and monitoring of the industry and its response to health-related taxes on SSBs are needed to help policymakers ensure that the increases in consumer prices (and not just the tax rate) are sufficient to reduce population obesity outcomes. |
| 3. | MIC policymakers may consider designing and monitoring a tax on SSBs that avoids exclusive focus on obesity indicators, but instead considers nutritional impact more broadly. For example, policymakers could consider including reductions in the prevalence of type-2 diabetes as an outcome of the tax, given its growth over the last few decades in MICs. |
| 4. | To produce more accurate estimates of impact, more evaluations using longitudinal data and quasi-experimental design are needed. |
| 5. | Adjusting existing household data to draw clearer distinctions could create opportunities for stronger research and avoid some of the limitation faced by some studies in this review (e.g., between beverages with and without added sugar). |
| 6. | To ameliorate any potential burden on the poor, MIC governments designing the tax may want to consider allocating some revenue to support multi-sectoral health promotional activities targeting poor and marginalized populations. |