Cost effectiveness of a sugar-sweetened beverage excise tax in the U.S.

Long, Michael W., Gortmaker, Steven L., Ward, Zachary J., Resch, Stephen C., Moodie, Marj L., Sacks, Gary, Swinburn, Boyd A., Carter, Rob C. and Wang, Y. Claire 2015, Cost effectiveness of a sugar-sweetened beverage excise tax in the U.S., American journal of preventive medicine, vol. 49, no. 1, pp. 112-123, doi: 10.1016/j.amepre.2015.03.004.

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Title Cost effectiveness of a sugar-sweetened beverage excise tax in the U.S.
Author(s) Long, Michael W.
Gortmaker, Steven L.
Ward, Zachary J.
Resch, Stephen C.
Moodie, Marj L.
Sacks, GaryORCID iD for Sacks, Gary
Swinburn, Boyd A.
Carter, Rob C.ORCID iD for Carter, Rob C.
Wang, Y. Claire
Journal name American journal of preventive medicine
Volume number 49
Issue number 1
Start page 112
End page 123
Total pages 12
Publisher Elsevier
Place of publication Amsterdam, The Netherlands
Publication date 2015-07
ISSN 1873-2607
Summary INTRODUCTION: Reducing sugar-sweetened beverage consumption through taxation is a promising public health response to the obesity epidemic in the U.S. This study quantifies the expected health and economic benefits of a national sugar-sweetened beverage excise tax of $0.01/ounce over 10 years. METHODS: A cohort model was used to simulate the impact of the tax on BMI. Assuming ongoing implementation and effect maintenance, quality-adjusted life-years gained and disability-adjusted life-years and healthcare costs averted were estimated over the 2015-2025 period for the 2015 U.S. POPULATION: Costs and health gains were discounted at 3% annually. Data were analyzed in 2014. RESULTS: Implementing the tax nationally would cost $51 million in the first year. The tax would reduce sugar-sweetened beverage consumption by 20% and mean BMI by 0.16 (95% uncertainty interval [UI]=0.06, 0.37) units among youth and 0.08 (95% UI=0.03, 0.20) units among adults in the second year for a cost of $3.16 (95% UI=$1.24, $8.14) per BMI unit reduced. From 2015 to 2025, the policy would avert 101,000 disability-adjusted life-years (95% UI=34,800, 249,000); gain 871,000 quality-adjusted life-years (95% UI=342,000, 2,030,000); and result in $23.6 billion (95% UI=$9.33 billion, $54.9 billion) in healthcare cost savings. The tax would generate $12.5 billion in annual revenue (95% UI=$8.92, billion, $14.1 billion). CONCLUSIONS: The proposed tax could substantially reduce BMI and healthcare expenditures and increase healthy life expectancy. Concerns regarding the potentially regressive tax may be addressed by reduced obesity disparities and progressive earmarking of tax revenue for health promotion.
Language eng
DOI 10.1016/j.amepre.2015.03.004
Field of Research 111104 Public Nutrition Intervention
111712 Health Promotion
160508 Health Policy
Socio Economic Objective 920207 Health Policy Economic Outcomes
HERDC Research category C1 Refereed article in a scholarly journal
ERA Research output type C Journal article
Grant ID NHMRC 1041020
Copyright notice ©2015, Elsevier
Persistent URL

Document type: Journal Article
Collections: Faculty of Health
School of Health and Social Development
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