Modern Australian
The Times Real Estate

.

Does a sugar tax cause alcohol sales to spike? The research doesn't give a decisive answer

  • Written by Robin Room, Professor, Centre for Alcohol Policy Research, La Trobe University

Consuming sugar-sweetened drinks is associated with a range of health issues including weight gain and obesity. These are risk factors for diabetes, heart disease, high blood pressure, strokes and certain cancers.

Taxing these drinks is an effective means of reducing their consumption and related health issues – as well as generating revenue for the government.

A recent study in the Journal of Epidemiology and Community set out to test whether a sugar tax might impact on other behaviours affecting public health, along with whether such a tax would prompt people to choose no- or low-calorie drinks.

The researchers ended up finding an association between higher soft-drink prices and higher demand for some alcoholic beverages in terms of family food and drink purchases.

Read more: Clearing up confusion between correlation and causation

They did not find that a sugar tax, let alone higher soft drink prices, caused people to drink more lager, as news reports suggest. In fact, the study provided no direct evidence a sugar tax will lead alcohol sales to increase.

How was the study conducted?

In this study, researchers from the London School of Hygiene & Tropical Medicine estimated elasticity of demand on non-alcoholic and alcoholic drinks in the UK, based on households’ response to price differences in sugary drinks.

They used existing consumer survey expenditure data collected between 2012 and 2013 from nearly 32,000 households.

Households recorded their individual groceries and drinks they had purchased and brought home using scanned bar codes (or manually entered them if there was no bar code). The researchers tracked how much the household spent, where they purchased, the day of purchase and volume of beverage purchased.

Read more: Australian sugary drinks tax could prevent thousands of heart attacks and strokes and save 1,600 lives

They didn’t track consumption, or drinks which were bought and consumed elsewhere (for instance, in a bar or at a tuckshop), just the purchase of these products.

The researchers then compared how much one family bought and brought home of each beverage type when faced with a particular set of prices, against how much another family bought of each beverage type with a different set of prices.

What were the results?

The results were mixed, with variations between beverage types and income groups. There were several key outcomes.

In families where the price paid for high sugar-sweetened beverages such as Coke and Red Bull was higher, there were greater purchases of lager (such as Stella Artois, Beck’s or Corona), but less purchasing of spirits.

Where the price paid for medium sugar-sweetened drinks (including Fanta, Sprite and Powerade) was higher, there were fewer purchases of beer, lager and wines, but more of spirits.

Read more: Sugar tax is not nanny state, it's sound public policy

Higher prices for diet or low sugar-sweetened drinks were associated with higher purchases of all alcoholic beverages except spirits, for which purchases were less.

Taking into account also relationships with other categories of drinks, the study concludes that a price increase for medium sugar-sweetened drinks would have the most significant positive impact from a public health perspective, given the drinks’ impact on dietary sugar and energy intake.

Does a sugar tax cause alcohol sales to spike? The research doesn't give a decisive answer The amount of alcohol bought and drank outside of the home wasn’t taken into account in the study. Photo by Julia Nastogadka on Unsplash

How we should read the results

In principle, elasticity is about what happens over time when there is a change – such as a new tax – which results in a higher price.

But the study was not actually measuring the effects of change in price over time. Rather, it correlated how much one family bought of each beverage type when faced with a particular set of prices against how much another family bought of each beverage type with a different set of prices.

But because the study isn’t actually measuring and correlating the change that elasticities would measure – a new tax and the change in consumption over time – it offers no direct evidence of what would happen in case of a change like a new tax, and should not be interpreted as having done so.

It is commonplace in economics to estimate elasticities this way, as a kind of modelling of what might happen with an actual price change, so it is not wrong for the authors to follow this common procedure. We just need to be careful how we interpret the results.

The study results indicate that an increase in the price of sugar-sweetened drinks potentially has both positive and negative impacts, from a public health perspective, on the consumption of alcoholic beverages. It suggests more nuanced price options across different ranges of beverages should be considered rather than a single tax only on high-sugar-sweetened beverages.

What else should we take into account?

The study’s measure of the amount of alcoholic beverages purchased was the number of bottles/containers of alcohol purchased – not the total units of pure alcohol (standard drinks) purchased. The demand for alcohol may not be accurately measured given different alcoholic beverages have different alcohol strengths and are in different sizes of containers.

And while the study looked at relationships between prices of sugar-sweetened drinks and consumption of other non-alcoholic and alcoholic drinks, the impact on other sugary products was not taken into account. For instance, previous studies suggest higher prices of sugar-sweetened drinks may have people substituting their sugar intake through things like sweets.

Read more: A sugary drinks tax could recoup some of the costs of obesity while preventing it

The paper’s unspoken contribution: counting the calories in alcoholic drinks

The paper takes for granted that the calories in alcohol drinks count when thinking about avoiding obesity. But alcohol is often overlooked when we are thinking about calories and obesity.

And it is not easy for consumers to take the calories in alcohol drinks into account. Unlike for every other packaged food or drink sold in Australia, the caloric content does not have to be listed on the label of alcoholic beverages. So one important contribution of the article is to underline that, aside from being intoxicating, alcoholic beverages are also high in calories.

As the paper points out, a bottle of lager beer contains slightly more calories than a can of Coca-Cola. This means arguments for discouraging obesity with a tax on drinks might well be directed at alcohol content as well as sugar content.

Authors: Robin Room, Professor, Centre for Alcohol Policy Research, La Trobe University

Read more http://theconversation.com/does-a-sugar-tax-cause-alcohol-sales-to-spike-the-research-doesnt-give-a-decisive-answer-90921

A Fast Charging Power Bank and Wireless Power Bank: The Future of Power Bank Technology

As the use of mobile devices grows, so does the demand for better, more efficient, faster, and more imaginative methods to power them. Previously re...

How to Extend the Lifespan of Your Power Bank: An Overview

Power banks are vital for ensuring your devices are powered while on the go, especially when on the move, outdoors, or during emergencies. They prov...

What is a Power Bank and How To Choose One

In a world filled with gadgets running out of battery is a real issue. This is where power banks can come in useful. They're portable, they hold pow...

Portable Chargers: How They Work & Essential Tips to Extend Battery Life

Portable chargers (also known as power banks) are essential accessories that keep your devices powered up while on the go — be it outdoor activiti...

How Artificial Tulip Displays Enhance Your Home’s Aesthetic

Artificial tulip displays have grown to be a common option for improving interior decor because of their exquisite look and long-lasting quality. Th...

The Psychology of Relationships: How Therapy Can Strengthen Bonds

Relationships require effort, understanding and communication. Couples and individuals can have better relationships with the assistance of therap...

Taking It Up a Notch: How 12.5kg Dumbbells Fit Into Progressive Overload Training

Photo by Jason Grant on Unsplash When it comes to getting stronger, more sculpted, and better conditioned, one principle reigns supreme in the worl...

Behind the Bowl: What Makes Premium Dog Food Worth the Price Tag?

Photo by Ayla Verschueren on Unsplash When it comes to feeding our four-legged companions, the pet food aisle can be a maze of options—bags promi...

Davines Sustainable Haircare: Revolutionizing Eco-Friendly Beauty Solutions

Davines is a well-known brand in the world of haircare, known for its high-quality products that deliver exceptional results. Its commitment to sust...

The Role of CDNs in Enhancing Headless CMS Performance and Reliability

A headless CMS provides businesses with the ultimate freedom for content management and output possibilities across any number of channels. However...

Finding the Right Dentist in Perth for Your Dental Implants: A Complete Guide

Missing teeth can significantly impact your quality of life, affecting everything from your ability to eat and speak to your self-confidence. Dental...

Fix These 5 Technical SEO Issues Hurting Your Perth Business Rankings

Perth businesses face unique challenges when competing for visibility in local search results.  While many business owners focus on content creati...

How a Professional Bookkeeper Can Help Your Small Business

Running a small business in Australia comes with many responsibilities, from managing day-to-day operations to ensuring compliance with tax and fina...

How Pre-Employment Drug Testing Can Improve Your Company’s Culture

When it comes to curating a thriving workplace, culture is everything. It is the glue holding teams together, the driving force behind productivity...

How To Find Comfortable And Stylish Armchairs Online

Shopping online can be tricky, particularly when it comes to buying furniture. All homeowners, including you, want an armchair that is stylish and c...

Rope Rescue Training Explained: Techniques, Tools & Skills

Rope rescue training is critical for emergency responders, industrial workers, and anyone who operates in high-risk environments. Whether you're a fir...

The Different Career Paths in a Law Firm: From Clerk to Partner

The legal profession offers a structured yet diverse career path, with opportunities ranging from entry-level positions to esteemed leadership roles...

The Importance of Exercise for People with Disabilities: Adaptive Workouts

Exercise is a fundamental part of maintaining physical and mental wellbeing, and this holds true for people of all abilities. For individuals with d...