Does a Soda Tax Make Sense? A Dual-City Survey Study in Philadelphia and Oakland

Abstract

The implementation of soda taxes as a public health measure to curb sugar-sweetened beverage consumption has gained significant attention in recent years. Through a dual-city survey conducted in 2017 and 2018, we gathered data on consumer behavior, merchant decision, and tax impact on beverage consumption patterns. The results of the DID study showed that after the implementation of the SSB tax in Philadelphia in 2017, the consumption of SSB beverages changed significantly. However, in Oakland, there was a slight change after 2018. Additionally, the tax has been well-received by a considerable portion of the population, with a majority expressing support for its continuation. However, combined with the data analysis, I found that under the influence of different consumer pass-through rates, the actual implementation effects of sugar tax in Philadelphia and Oakland are different. The consumption of SSBs in Philadelphia decreases and the consumption of alternative goods increases, while the consumption of SSBs and alternative goods in Oakland decreases significantly and simultaneously. This study will provide arguments for the debate on the effectiveness and acceptability of SSB taxes as a public health intervention by analyzing the reasons for differences in actual implementation of policies between the two cities, while providing new analytical directions for policymakers.