Avoidance behaviors circumventing the sugar-sweetened beverages tax

Taxes on sugar-sweetened beverages and other types of “sin taxes” are usually introduced at the local level supply side; efficacy such taxes is challenged by tax avoidance behavior. In this study, we evaluate impact beverage in Seattle, WA; Boulder, CO; Cook County, IL (Chicago); Philadelphia, PA, two cities San Francisco Bay Area California (Berkeley Oakland). We use grocery scanner data relying a series difference-in-difference designs. Results show that each cent per ounce causes price taxed to increase range from 0.47 0.98 cents/ounce, sales quantity decrease 5.1–14.4%. But undermined behaviors: (1) cross-border shopping avoidance, where people shop outside area; (2) substitution which switch tax-exempt just as high sugar. The results study provide evidence can be effective. However, enhance effectiveness taxes, policy makers should consider when developing future similar policies.