Just published: Sharma, A., Sinha, K. (2026). The Economics of a Sin Tax on Sugar-Sweetened Beverages. In: Zimmermann, K.F. (eds) Handbook of Labor, Human Resources and Population Economics. Springer, Cham.

https://doi.org/10.1007/978-3-319-57365-6_298-1

ABSTRACT. The increasing global prevalence of non-communicable diseases (NCDs), including type II diabetes, cardiovascular disease, and obesity, represents a major public health challenge. This chapter reviews the effectiveness of price-based policy interventions, with a focus on taxes on sugar-sweetened beverages (SSBs), as a strategy to address these health concerns. By analyzing the evidence from simulation-based studies and real-world implementation, the chapter explores the application of economic theory to understand consumer behavior and the potential impacts of SSB taxes. Key considerations include the price sensitivity of SSB consumption, the substitution effects—both desirable and undesirable—on other food and beverage choices, and the distributional consequences across income levels and age groups. Additionally, the chapter evaluates the health benefits, such as reductions in obesity and chronic disease rates, as well as the economic benefits stemming from lower healthcare expenditures. The evidence indicates that well-implemented SSB taxes can effectively reduce consumption, improve population health outcomes, and generate significant government revenue, positioning them as a promising tool in the global effort to combat the NCD epidemic.

GLO Fellow Anurag Sharma is a Senior Lecturer at the University of New South Wales, Australia. GLO Fellow Kompal Sinha is a Professor of Economics at Macquarie University, Australia, an Editor of the Journal of Population Economics and a Section Editor “Health” of the Handbook of Labor, Human Resources and Population Economics published by Springer Nature.

Obesity Epidemic in Germany

These findings support a recent initiative of the German National Academy of Sciences Leopoldina. A Leopoldina “Policy Brief” of 21 January 2026 is recommending comprehensive measures, including a tax on sugary and fatty foods, to fight the obesity epidemic in Germany. MORE DETAILS.

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