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Reducing Diet-Related Disease through Taxes on Sugary Drinks

Short Summary


  • Consumption of sugar-sweetened beverages (SSBs) is a major contributor to rising rates of diabetes, cardiovascular disease, and poor oral health worldwide

  • Well-designed SSB taxes have been shown to reduce consumption and encourage product reformulation

  • A new charity could support governments to adopt and sustain effective sugary drink taxes in countries where policy action has been limited

The Problem


What’s the problem?

  • SSBs are strongly linked to obesity, type 2 diabetes, cardiovascular disease, and poor oral health

  • Consumption of sugary drinks has been increasing substantially as they become more available and affordable (especially in LMICs)


Why does it matter?

  • SSBs contribute meaningfully to the global burden of non-communicable disease

  • They offer little to no nutritional value

  • Reducing intake represents a high-impact opportunity to improve population health in countries where diet-related disease is rising and policy responses have lagged


Neglectedness:

  • Despite strong evidence of their effectiveness, SSB taxes remain underused

  • Only 44 countries have implemented SSB taxes in line with best practices

  • The strongest existing organizations working in this area are active in just 28 countries

The Solution


What’s the proposed solution?

  • Advocating for the adoption of WHO-recommended 20% taxes on SSBs in neglected countries

  • Where taxes are successfully introduced, the new charity would also support governments with implementation and enforcement to help ensure the policy is applied and sustained over time


Why do we trust this solution?

  • Evidence shows that SSB taxes reduce consumption and incentivize producers to reduce sugar content

  • SSB taxes are recommended by the WHO as an effective policy tool for addressing non-communicable diseases

  • SSB taxes have already been implemented in 44 countries, across all income levels


How robust is the evidence?

  • Strong evidence from meta-analysis and real-world policy evaluations show that SSB taxes reduce consumption

  • Evidence of the direct impact of SSB taxes on long-term health outcomes is more limited, but the link between lower SSB consumption and improved health is well established

The Impact


What impact could this have?

  • At scale, SSB taxation has the potential to reduce rates of obesity, diabetes, and cardiovascular disease, while also generating public revenue that can be reinvested in health

  • Our modeling suggests that this intervention could avert an average of ~66,000 DALYs per year, with a range between ~10,000–150,000 DALYs depending on the country


Estimated cost-effectiveness:

  • This intervention can be highly cost-effective in some settings, though our results vary substantially by country

  • Across the ten countries analyzed, our model shows an average cost of $185 per DALY averted, with a range of $32-513 per DALY

  • The intervention meets our cost-effectiveness bar of $220 per DALY averted in 6 of the 10 countries modeled

  • Independent modeling by CEARCH also suggests strong cost-effectiveness, estimating that SSB tax advocacy in LMICs could avert one DALY for $2.91

Ideal Founder Profile


  • Who is best suited to do this? *

    • This idea is best suited to founders interested in policy advocacy and systems-level change

    • It would suit individuals who are comfortable working with government stakeholders, navigating political processes, and operating in environments where progress is often slow and uncertain

  • What might our ideal candidate look like?

    • Strong communication skills, and the ability to build and maintain relationships with diverse stakeholders

    • Previous experience in lobbying would be helpful but not required


*We think candidates with the following skills will have a comparative advantage/be especially promising for founding this idea, but we would like to still encourage applicants from people who do not match this criteria who are enthusiastic about this idea and believe they may be well-suited for reasons not captured here


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Charity Entrepreneurship (CE) is a registered charity in England and Wales (Charity Number 1195850). CE supports its incubated charities through a fiscal sponsorship with Players Philanthropy Fund (Federal Tax ID: 27-6601178, ppf.org/pp), a Maryland charitable trust with federal tax-exempt status as a public charity under Section 501(c)(3) of the Internal Revenue Code.


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