Soda Tax, Health Outcomes and Taxation Analysis in Mexico (Joint Work with Oscar Galvez-Soriano and George Chou)
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This research examines the health effects of sugar-sweetened beverages (SSBs) and the 2014 soda tax in Mexico, introduced to mitigate consumption and improve public health. It highlights the substitution between water and SSBs, driven by limited access to clean water in Mexico. Despite mixed research findings, the tax led to a 6% decrease in SSB purchases, particularly among low-income households. The study also explores the ad valorem nature of the tax, its advantages in targeting lower-priced products, and its regressive impact on low-income individuals. The research aims to contribute by examining soda and water demand in Mexico and comparing the regressiveness of the tax to wealthier countries like the UK and the US. Brief