Abstract
This study evaluates the effects of the 2018 UK Soft Drinks Industry Levy. We combine novel electronic point of sale data with longitudinal nutritional information and a variety of event-study specifications. All but a few global soft drinks brands reduced sugar content and hence avoided the tiered levy. For brands that maintained their recipes, the levy was on average over-shifted resulting in substantial retail price increases and reductions in consumption, particularly for colas. The levy is responsible for a reduction in intake of about 6,600 calories per year per UK resident, 80% of which is attributable to reformulation by manufacturers.
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© 2023 by the President and Fellows of Harvard College and the Massachusetts Institute of Technology
2023
The President and Fellows of Harvard College and the Massachusetts Institute of Technology
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