Will the consumption tax on sugar-sweetened beverages help promote healthy beverage consumption? Evidence from urban China

Zhai, Tianchang; Li, Lei; Wang, Jingjing; Si, Wei

doi:10.1016/j.chieco.2022.101798

Cited by 16 publications

(9 citation statements)

References 44 publications

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“…On average, diet CSD products (with an average price elasticity of −3.860) are found to be more price sensitive than regular CSD products (with an average price elasticity of −3.147). Zhai et al (2022) estimated subcategory‐level price elasticities of regular and diet sugar‐sweetened beverages in China based on a quadratic almost ideal demand system (QUAIDS) model, in which they also reported a higher price elasticity for diet beverages compared with regular beverages among Chinese consumers at the aggregated subcategory level. Compared with brand‐level price elasticities for CSD products in the US market, the magnitudes of estimated own‐price elasticities in China's market are slightly less (Dhar et al, 2005; Liu, Lopez, et al, 2014; Zhen et al, 2011).…”

Section: Resultsmentioning

confidence: 99%

“…In China, the per capita annual intake of sugar was approximately 19.6 kg in 2008, and the State Council aims to reduce that number to 9.125 kg (or less than 25 g/day) by 2030 (National Health Commission, 2019). Zhai et al (2022) reported that an additional 20%–40% consumption tax on sugar‐sweetened beverages could effectively lower the sugar intake of Chinese consumers. Our simulation results demonstrate that nutrition labeling could be an alternative policy tool for sugar reduction, especially when the sugar content is explicitly disclosed in nutrition labels.…”

Section: Resultsmentioning

confidence: 99%

Section: Policy Implicationsmentioning

confidence: 99%

See 2 more Smart Citations

Consumer responses to nutrition labels in China

Zhu

López

Zhen

et al. 2023

J of Agr & App Econ Assoc

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As a cost‐effective way to promote healthy eating habits and prevent obesity, nutrition labeling has drawn great public interest around the world. China implemented its first mandatory nutrition labeling regulation under the National Food Safety Standard for Nutrition Labeling of Pre‐packaged Foods (GB28050‐2011) in 2013. Focusing on the Chinese carbonated soft drinks market and using a mixed logit model based on 132,849 purchase records from over 40,000 households, this study investigates consumers' responses to nutrition labels. Empirical results show that nutrition labeling induces Chinese consumers to select relatively healthier products and could be a prominent policy tool for sugar reduction.

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Section: Resultsmentioning

confidence: 99%

Section: Resultsmentioning

confidence: 99%

Section: Policy Implicationsmentioning

confidence: 99%

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Consumer responses to nutrition labels in China

Zhu

López

Zhen

et al. 2023

J of Agr & App Econ Assoc

View full text Add to dashboard Cite

show abstract

“…Finally, considering that a sugary beverage tax, one of the most cost-effective public health strategies, is a common price instrument used in several countries to tackle obesity [ 39 , 40 ], it may also be one of the intervention policies to tackle rising sugary beverage consumption in China in the future. It has been argued that a tax on sugary beverages would induce a shift in the consumption of sugary beverages to sugar-free or low-sugar beverages among the population [ 41 , 42 ]. Then, with the gradual increase in income levels and nutritional health awareness of the population, coupled with the sugary beverage tax, we can imagine that the consumption of sugary beverages by the population will further decrease significantly, thus accelerating the change in the beverage consumption market pattern.…”

Section: Discussionmentioning

confidence: 99%

Exploring the Relationship between Sugar and Sugar Substitutes—Analysis of Income Level and Beverage Consumption Market Pattern Based on the Perspective of Healthy China

Liu

Peng

2022

Nutrients

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This paper estimates the impact of income level on household beverage consumption, analyzes the consumption trends of sugar-sweetened beverages and sugar-free beverages in households, explores the future changes in the beverage consumption market pattern, and predicts the possible impact of the sugar industry on the development of sugar substitutes based on the beverage consumption data of Kantar Consumer Index in China from 2015 to 2017. The research results show that, firstly, there is an “inverted U-shaped” relationship between income level and household consumption of sugar-sweetened beverages, which indicates that as income rises, household consumption of sugar-sweetened beverages tends to increase and then decrease. Secondly, income level has a positive effect on the household consumption of sugar-free beverages. Finally, in the future stage, with the further growth of income and the promotion of a healthy China, a large amount of sugar substitutes will be added to beverages instead of the original sugar, and the relationship between sugar and sugar substitute consumption will change from complementary to substitution. The findings of this paper have implications for encouraging food and beverage suppliers to produce “healthy”, “nutritious” and “innovative” low-sugar products to meet the health needs of residents and ensure the healthy and orderly development of the sugar industry.

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“…Industrialization and urbanization are still in progress for many emerging economies, which seems to inevitably contribute to the pollution problem. Unlike consumption tax and corporate tax [ 1 , 2 , 3 ], environmental tax is widely used to control environmental pollution [ 4 ] as one of the market-based tools. However, there are some differences in the contents of environmental tax due to the different patterns of economic development in different countries.…”

Section: Introductionmentioning

confidence: 99%

The Effects of Environmental Tax Revenue on Sustainable Development in China

Wang

et al. 2023

IJERPH

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Despite extensive studies focused on environmental tax revenue (ETR) on the driver and linkage with socioeconomic variables over time, an in-depth investigation on the spatiotemporal driver and intrinsic characteristics (e.g., convergence and complex network) is in need, providing valuable information on formulating better environmental tax policy towards sustainable development. Therefore, the study comprehensively analyzed the spatiotemporal driver, convergence trend, and complex network of provincial ETR in a case of China over 2000–2019 by using temporal and spatial logarithmic mean Divisia index models (LMDI), convergence models, and social network analysis, respectively. We found that, first, two convergence clubs of ETR for China’s provinces over the period were found. Second, GDP per capita and tax intensity were the positive and negative drivers contributing the increase in ETR. Third, within differences in tax intensity and GDP per capita, as well as the differences in population and GDP per capita, were the main drivers widening the overall ETR gap. Fourth, the original hierarchical ETR spatial correlation structure has changed, while provinces exhibited certain degrees of heterogeneity in terms of ETR spatial association network. The study highlights that ETR plays a significant role in maintaining sustainable development and thus suggests that more importance of environmental tax policies at various levels should be attached.

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Will the consumption tax on sugar-sweetened beverages help promote healthy beverage consumption? Evidence from urban China

Cited by 16 publications

References 44 publications

Consumer responses to nutrition labels in China

Consumer responses to nutrition labels in China

Exploring the Relationship between Sugar and Sugar Substitutes—Analysis of Income Level and Beverage Consumption Market Pattern Based on the Perspective of Healthy China

The Effects of Environmental Tax Revenue on Sustainable Development in China

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