Taxing flavored waters (soda): an alternative for financing the fight against diabetes in México

Authors

  • Alma Esther Aguilar-Estrada
  • Miguel Ángel Martínez-Damián
  • Ma. de Jesús Santiago-Cruz
  • José de Jesús Brambila-Paz
  • Fernando Manzo-Ramos

Abstract

Diabetes is the number one cause of death in people of productive
age in México, generating high economic and social costs at the
micro and macroeconomic levels. In 90% of diabetes cases, they
are attributed to obesity, which is directly related to imbalances
in the diet and to a sedentary lifestyle. The average expenditure
in soda consumption is equivalent to 12 and 7.5% of the basic
food basket, rural and urban, respectively. The objective of
this study was to propose an alternative for financing diabetes
treatment by imposing a tax on soda consumption. The
methodology consists in estimating the expenditure in diabetes
treatment and soda consumption using information from the
ENSANUT 2006 databases, and performing a sensibility analysis
with different tax sums, and in view of different scenarios for
product price elasticities. Results indicate that the income
generated from a tax of two to three pesos per liter, taking into
account a price elasticity between -0.5 and 1.0, might cover
the total cost generated by diabetes treatment in México, and
decrease its consumption in 13% to 19%.

Published

2011-05-05

How to Cite

Aguilar-Estrada, A. E., Martínez-Damián, M. Ángel, Santiago-Cruz, M. de J., Brambila-Paz, J. de J., & Manzo-Ramos, F. (2011). Taxing flavored waters (soda): an alternative for financing the fight against diabetes in México. Agricultura, Sociedad Y Desarrollo, 8(3), 421–432. Retrieved from https://www.revista-asyd.org/index.php/asyd/article/view/1161