Angel, Jimmy, Michaels, Ulysses
If the price for healthy juice and soft drinks are the same, which would you choose?
If there's increased price for soft drinks, what would you choose then?
A Pigovian tax is a tax on any market activity that generates negative externalities.
A fat tax is a tax or surcharge that is placed upon fattening food, beverages or on overweight individuals.
Numerous studies suggest that as the price of a food decreases, individuals get fatter.
Effects on public health
Effects on working
Effects on marketing
Effects on governments
The mechanism may not work as expected.
What products should be targeted?
Fat tax can be burdensome for the poor.