A six-month field experiment was conducted in a small American city to examine whether taxes on soft drinks could reduce obesity. Some key insights from the experiment:
- “Could taxes on soft drinks reduce obesity? To examine this, a six-month field experiment was conducted in a small American city where half of the households faced a 10% tax and half did not. The 10% tax resulted in a short-term (1-month) decrease in soft drink purchases, but there was no decrease in purchases over a 3-month or 6-month period. Moreover, in beer-purchasing households, this tax led to increased purchases of beer”.
You can find the whole paper here.