The impact on productivity of a hypothetical tax on sugar-sweetened beverages

Nomaguchi, Takeshi, Cunich, Michelle, Zapata-Diomedi, Belen and Veerman, J. Lennert (2017) The impact on productivity of a hypothetical tax on sugar-sweetened beverages. Health Policy, 121 6: 715-725. doi:10.1016/j.healthpol.2017.04.001

Attached Files (Some files may be inaccessible until you login with your UQ eSpace credentials)
Name Description MIMEType Size Downloads
UQ674295_OA.pdf Full text (open access) application/pdf 700.87KB 0

Author Nomaguchi, Takeshi
Cunich, Michelle
Zapata-Diomedi, Belen
Veerman, J. Lennert
Title The impact on productivity of a hypothetical tax on sugar-sweetened beverages
Journal name Health Policy   Check publisher's open access policy
ISSN 1872-6054
0168-8510
Publication date 2017-06-01
Sub-type Article (original research)
DOI 10.1016/j.healthpol.2017.04.001
Open Access Status File (Author Post-print)
Volume 121
Issue 6
Start page 715
End page 725
Total pages 11
Place of publication E Park, Shannon, Clare Ireland
Publisher Elsevier Ireland
Language eng
Subject 2719 Health Policy
Abstract Objectives To quantify the potential impact of an additional 20% tax on sugar-sweetened beverages (SSBs) on productivity in Australia. Methods We used a multi-state lifetable Markov model to examine the potential impact of an additional 20% tax on SSBs on total lifetime productivity in the paid and unpaid sectors of the economy. The study population consisted of Australians aged 20 years or older in 2010, whose health and other relevant outcomes were modelled over their remaining lifetime. Results The SSBs tax was estimated to reduce the number of people with obesity by 1.96% of the entire population (437,000 fewer persons with obesity), and reduce the number of employees with obesity by 317,000 persons. These effects translated into productivity gains in the paid sector of AU$751 million for the working-age population (95% confidence interval: AU$565 million to AU$954 million), using the human capital approach. In the unpaid sector, the potential productivity gains amounted to AU$1172 million (AU$929 million to AU$1435 million) using the replacement cost method. These productivity benefits are in addition to the health benefits of 35,000 life years gained and a reduction in healthcare costs of AU$425 million. Conclusions An additional 20% tax on SSBs not only improves health outcomes and reduces healthcare costs, but provides productivity gains in both the paid and unpaid sectors of the economy.
Formatted abstract
Objectives: To quantify the potential impact of an additional 20% tax on sugar-sweetened beverages (SSBs) on productivity in Australia.

Methods: We used a multi-state lifetable Markov model to examine the potential impact of an additional 20% tax on SSBs on total lifetime productivity in the paid and unpaid sectors of the economy. The study population consisted of Australians aged 20 years or older in 2010, whose health and other relevant outcomes were modelled over their remaining lifetime.

Results: The SSBs tax was estimated to reduce the number of people with obesity by 1.96% of the entire population (437,000 fewer persons with obesity), and reduce the number of employees with obesity by 317,000 persons. These effects translated into productivity gains in the paid sector of AU$751 million for the working-age population (95% confidence interval: AU$565 million to AU$954 million), using the human capital approach. In the unpaid sector, the potential productivity gains amounted to AU$1172 million (AU$929 million to AU$1435 million) using the replacement cost method. These productivity benefits are in addition to the health benefits of 35,000 life years gained and a reduction in healthcare costs of AU$425 million.

Conclusions: An additional 20% tax on SSBs not only improves health outcomes and reduces healthcare costs, but provides productivity gains in both the paid and unpaid sectors of the economy.
Keyword Health policy
Markov model
Obesity
Productivity
Taxes
Q-Index Code C1
Q-Index Status Provisional Code
Institutional Status UQ

Document type: Journal Article
Sub-type: Article (original research)
Collections: HERDC Pre-Audit
School of Public Health Publications
UQ Business School Publications
Admin Only - School of Public Health
 
Versions
Version Filter Type
Citation counts: TR Web of Science Citation Count  Cited 0 times in Thomson Reuters Web of Science Article
Scopus Citation Count Cited 0 times in Scopus Article
Google Scholar Search Google Scholar
Created: Sun, 16 Jul 2017, 02:11:18 EST by System User on behalf of Learning and Research Services (UQ Library)