The Use of Excise Taxes to Reduce Tobacco, Alcohol, and Sugary Beverage Consumption

Posted: 2 May 2019

See all articles by Frank J. Chaloupka

Frank J. Chaloupka

University of Illinois at Chicago - Department of Economics; National Bureau of Economic Research (NBER)

Kenneth E. Warner

University of Michigan at Ann Arbor - School of Public Health

Lisa M. Powell

University of Illinois at Chicago - Department of Health Policy and Administration (HPA)

Date Written: April 2019

Abstract

In countries around the world, tobacco use, excessive alcohol consumption, and consumption of sugar-sweetened beverages (SSBs) are significant contributors to the global epidemic of noncommunicable diseases. As a consequence, they contribute, as well, to excess health care costs and productivity losses. A large and growing body of research documents that taxes specific to such products, known as excise taxes, reduce consumption of these products and thereby diminish their adverse health consequences. Although such taxation has historically been motivated primarily by revenue generation, governments are increasingly using these taxes to discourage unhealthy consumption. We review the global evidence on the impact of taxes and prices on the consumption of these products and the health and social consequences. We then evaluate arguments commonly raised against these taxes, identify best practices in excise tax policy, and conclude with a summary of the current status of tobacco, alcohol, and SSB excise taxes globally.

Suggested Citation

Chaloupka, Frank J. and Warner, Kenneth E. and Powell, Lisa M., The Use of Excise Taxes to Reduce Tobacco, Alcohol, and Sugary Beverage Consumption (April 2019). Annual Review of Public Health, Vol. 40, pp. 187-201, 2019, Available at SSRN: https://ssrn.com/abstract=3381471 or http://dx.doi.org/10.1146/annurev-publhealth-040218-043816

Frank J. Chaloupka

University of Illinois at Chicago - Department of Economics ( email )

m/c 144 601 South Morgan St., Room 2103
Chicago, IL 60607-7121
United States
312-413-2367 (Phone)
312-996-3344 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Kenneth E. Warner (Contact Author)

University of Michigan at Ann Arbor - School of Public Health ( email )

1415 Washington Heights
Ann Arbor, MI 48109-2029
United States
734-936-0934 (Phone)
734-764-4338 (Fax)

Lisa M. Powell

University of Illinois at Chicago - Department of Health Policy and Administration (HPA) ( email )

1747 W. Roosevelt Road
MC 275
Chicago, IL 60608
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
386
PlumX Metrics