In the UK, over 80% of those aged under 21 exceed the maximum recommended level of added-sugar consumption, with sugar from soft drinks being a big contributor to this. Such excess sugar consumption is potentially costly — both to the individual and to others in society. Individuals with sugary diets have a much higher chance of developing health conditions including obesity, type-II diabetes and heart disease. This, in turn, makes them more likely to use healthcare services.
However, the costly nature of sugar consumption is not in itself enough to justify government intervention. To understand why, it is helpful to think about how individuals make decisions about how much to consume.
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