Brief: SSB Excise Tax in West Virginia

This model-based analysis assessed the benefits, costs, and cost-effectiveness of implementation of an increase of the state excise tax by either $0.02/ounce or $0.01/ounce of sugar-sweetened beverages (SSBs), administered by the West Virginia Department of Revenue and based on the current excise tax in West Virginia.

The CHOICES microsimulation model for West Virginia was used to calculate the costs and effectiveness over ten years (2015–25). This is a stochastic, discrete-time, individual-level microsimulation model designed to simulate the experience of the West Virginia population from 2015 to 2025. Cases of obesity prevented were calculated at the end of the model in 2025. The model uses data from the U.S. Census, American Community Survey, Behavioral Risk Factor Surveillance System, NHANES, National Survey of Children’s Health, the Medical Expenditure Panel Survey, and multiple longitudinal studies.

Results showed that an increase in the state SSB excise tax by $0.02/ounce will prevent thousands of cases of childhood and adult obesity, prevent new cases of diabetes, increase healthy life years and save more in future health care costs than it costs to implement, with a lower impact for an increase of $0.01/ounce tax. The analysis also considered the impact on diabetes, dental decay, and equity.

Rising rates of obesity represent one of the greatest public health threats facing the United States. Obesity has been linked to excess consumption of sugary drinks. Federal, state, and local governments have considered implementing excise taxes on sugary drinks to reduce consumption, reduce obesity, and provide a new source of government revenue.

This brief was developed by the CHOICES Project at the Harvard T.H. Chan School of Public Health. Funded by the JPB Foundation. Results are those of the authors and not the funders. The information in this brief is intended to provide educational information on the cost effectiveness of SSB taxes.