This article surveys the economic literature about fiscal food policies, illustrating the main issues by empirical results about the taxation of sugar-sweetened beverages. Some key insights from the article:
- “[…] consumers are able to substitute between many food products, and producers are free to change the price and the quality of the supply; Hence, any taxation scheme may be defeated by market reactions. The behavioral and health impact of a nutritional tax should thus be low, at least at conventional levels of taxation (between 5 and 20%). […]”
You can find the whole paper here.