Examining the cost-effectiveness and impact of a sugary drink tax in California

Young girl drinking waterThrough the CHOICES Learning Collaborative Partnership, partners at the California Department of Public Health and the County of Santa Clara Public Health Department worked with the CHOICES Project Team to model the potential implementation of a state excise tax on sugary drinks (at a tax rate of $0.02/ounce) in California. The tax modeled is projected to be cost-saving (that is, the tax saves more in future health care costs than it costs to implement even without the potential revenues). The tax is also projected to decrease sugary drink consumption among California residents, prevent nearly 200,000 cases of obesity, and save more than 1.8 billion dollars in health care costs. These expected changes in consumption and health outcomes are projected to improve population health and reduce health disparities in California.

 

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