The trade effects of SSB taxes in Europe : a comparative case study of France, the UK and Germany
Wagner, Kelly (2025)
2025
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2025111928602
https://urn.fi/URN:NBN:fi:amk-2025111928602
Tiivistelmä
This thesis assesses whether sugar-sweetened beverage (SSB) taxes affect trade within Europe through a comparative case study of France and the United Kingdom, with Germany as a non-tax comparator.
Cross-border and domestic market effects are evaluated by combining relevant literature, secondary data, and comparative analysis of policies. The research is supported by several theoretical frameworks, such as Pigouvian taxation, policy diffusion, and political economy. The results found show that tax design has a stronger impact on market outcomes than the presence of the tax itself. Domestic effects appear to be the most noticeable with reformulation, price and demand fluctuations, as well as product diversification, while no harmful trade distortions were highlighted in taxed countries in the long term.
The effectiveness of the policy is demonstrated to be stronger in the UK due to its quality tiered design model, while France still shows the need for improvement, even after reforming its initial flat taxation. Germany’s case helps to demonstrate the absence of cross-border effects of the tax and supports policy harmonization ideas across European countries.
The results overall point to the conclusion that well-structured SSB taxes can support health objectives without negatively impacting the European market and its stability and encourage greater EU coordination in future policy development.
Cross-border and domestic market effects are evaluated by combining relevant literature, secondary data, and comparative analysis of policies. The research is supported by several theoretical frameworks, such as Pigouvian taxation, policy diffusion, and political economy. The results found show that tax design has a stronger impact on market outcomes than the presence of the tax itself. Domestic effects appear to be the most noticeable with reformulation, price and demand fluctuations, as well as product diversification, while no harmful trade distortions were highlighted in taxed countries in the long term.
The effectiveness of the policy is demonstrated to be stronger in the UK due to its quality tiered design model, while France still shows the need for improvement, even after reforming its initial flat taxation. Germany’s case helps to demonstrate the absence of cross-border effects of the tax and supports policy harmonization ideas across European countries.
The results overall point to the conclusion that well-structured SSB taxes can support health objectives without negatively impacting the European market and its stability and encourage greater EU coordination in future policy development.