Do High Consumers of Sugar-Sweetened Beverages Respond Differently to Price Changes? A Finite Mixture IV-Tobit Approach
This study compared the impact that a 20 per cent sales tax and a 20 cents per litre excise tax on beverages such as carbonated non-diet soft drinks, cordials and fruit drinks would have on moderate and high consumers. It found that although high consumers of sugar-sweetened beverages have the least elastic demand, they drink so much that they are up against household budget limits, and therefore adding tax would bring down their consumption.