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This research investigates the effect of imposing a tax on sugar-sweetened beverages (SSBs) on the likelihood of purchasing SSBs. We design and test an experimental framework that examines this and the effects of providing an explanation about the presence of an SSB tax and information about the negative health effects of consuming SSBs. Consistent with Elbel, Taksler, Mijanovich, Abrams, and Dixon (2013) and Taylor, Kaplan, Villas-Boas, and Jung (2019), we find that imposing a tax, in addition to increasing the conspicuousness of the tax by explaining the presence of a tax (and in some cases, the negative health effects) reduces the likelihood of purchasing an SSB anywhere from 8.39% to 18.15%. We contribute to the public health and tax policy literature by testing consumer choice in a controlled experimental setting and considering the effect of individual differences on the choice to purchase SSBs. Imposing a tax on SSBs may be an effective tool for decreasing SSB consumption that is made more effective when the tax is conspicuous.

In 2017, global plastic production reached 348 million tonnes. Despite growing concerns about the environmental challenges associated with both plastic production and plastic waste, recent estimates suggest that plastic production and subsequent waste is expected to double by the year 2035 (European Commission, 2018). To help reduce the amount of plastic waste that litters the oceans and damages the environment, the European Union has recently commissioned a study about the feasibility of levying a tax on plastic products (New Economic Foundation for the Rethink Plastic Alliance, 2018). However, very few academic articles currently exist that critically examine the arguments for or against a plastic tax and thereby enlighten government and regulators on the subject. This chapter investigates whether plastic taxes can be used as an economic disincentive for plastic products and explores its advantages and disadvantages within a circular economy. It explores whether a plastic tax is the right economic instrument to limit the use of plastics, generate design and technical innovations for bio-based materials and degradable/recyclable plastics, create other economic incentives to optimize the value of plastic and its waste collection, and increase public awareness and responsibility. We find that a plastic tax may be a suitable solution as it is likely to influence the design, production, consumption, and waste sectors if designed properly. Yet, the tax should be carefully implemented and combined with other instruments to obtain the desired outcomes and reduce the occurrence of unfavorable side effects.