AUTHOR=Ding Ningxin , Desai Jaikishan 

TITLE=Measuring the harm of sugar sweetened beverages and internalities associated with it

JOURNAL=Frontiers in Public Health

VOLUME=Volume 12 - 2024

YEAR=2024

URL=https://www.frontiersin.org/journals/public-health/articles/10.3389/fpubh.2024.1152710

DOI=10.3389/fpubh.2024.1152710

ISSN=2296-2565

ABSTRACT=Obesity, partly driven by sugar-sweetened beverage (SSB) consumption, significantly raises the risk of type-2 diabetes and cardiovascular diseases, imposing substantial health and economic burdens. This study aims to measure the monetary value of health harm from SSB consumption, and the internalities associated with it, which are critical in determining the socially optimal tax rate. Using contingent valuation, we surveyed 293 Wellington, New Zealand residents on their willingness to pay (WTP) for reductions in diabetes, stroke, and heart disease risks associated with SSB intake. Logistic regression analysis revealed the marginal WTP for a 1% risk reduction in diabetes, stroke, and heart disease as $404.86, $809.04, and $1,236.84, respectively. Based on these values, our estimate shows the marginal harm from SSB consumption is approximately NZ$17.37 per litre in New Zealand, with internalities of NZ$6.43 per litre, suggesting an optimal tax rate of NZ$6.49 per litre. Imposing such a tax would double or triple the price of SSBs in New Zealand.