Document Type

Working Paper

Publication Date


Working Paper Number

WP #10031, September 2010; CARD Working Paper #10-WP 510


In order to reduce obesity and associated costs, policymakers are considering various policies, including taxes, to change consumers' high-calorie consumption habits. We investigate two tax policies aimed at reducing added sweetener consumption. Both a consumption tax on sweet goods and a sweetener input tax can reach the same policy target of reducing added sweetener consumption. Both tax instruments are regressive, but the associated surplus losses are limited. The tax on sweetener inputs targets sweeteners directly and causes about five times less surplus loss than the final consumption tax. Previous analyses have overlooked this important point.

Publication Status

Published in Contemporary Economic Policy, Vol. 30 no. 3 (2012): 344-361.

JEL Classification

I18, Q18

File Format



84 pages

Included in

Economics Commons