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IB Economics HL IA : Microeconomics Negative Externality

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  • IB Economics
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  • Economics for the IB Diploma with CD-ROM

This is a Microeconomics IA based on Negative Consumption Externality that received 12/14 from the IB. The IA discusses the analysis and impact of how the situation regarding the increasing sugary drinks sales among children aged between 2 and 15 in Scotland has become a growing concern.

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  • October 25, 2020
  • 7
  • 2018/2019
  • Study guide

Subjects

  • ib economics
  • ibdp economics
  • economics
  • economics hl
  • ib economics hl
  • economics ia
  • ib economics ia

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Microeconomics – Commentary 1 Name:


ARTICLE

Health experts plead to curb sugary drinks sales as Scottish children
down 600,000 a DAY

SCOTS children risk a lifetime of ill health by consuming 600,000 sugary drinks every day,
according to research published today.


By TOM MARTIN, SCOTTISH POLITICAL EDITOR

PUBLISHED: 12:09, Tue, Dec 4, 2018 | UPDATED: 12:18, Tue, Dec 4, 2018




Excessive sugar consumption leads to childhood obesity (Image: Steven Robinson Pictures/
GETTY)

Cancer Research UK found youngsters aged between 2 and 15 drink four million soft drinks
every week between them. Two-thirds of Scots adults and 29% of children are overweight or
obese.

Excessive sugar consumption leads to childhood obesity, which can cause a host of health
problems, including heart disease and Type 2 diabetes. The UK Government introduced a
sugar tax on some drinks last April, but it has come under fire from campaigners for not do-
ing more.

The Scottish Government recently revealed a crackdown on the promotion of foods high in
salt, sugar and fat in a bid to tackle the nation’s burgeoning obesity epidemic. Proposals put
out for consultation could see restrictions placed on “supersized” soft drinks, free refills,
multi-buys and unhealthy food displays at shop checkouts.

Professor Linda Bauld, Cancer Research UK’s prevention expert, based at the University of
Stirling, urged ministers to take action.

,Microeconomics – Commentary 1 Name:


She said: “It’s scandalous that sugary drinks are now a routine part of what our children are
consuming daily. Supermarket multi-buy deals encourage us to bulk buy, so these drinks are
always within reach at home.

“While the sugar tax was a step in the right direction, there’s much more to be done.”

Backing curbs on multi-buy offers, she added: “This measure would go a long way to deter-
ring families from stocking up on drinks that are doing so much damage to our diets.”

The research, based on the Scottish Health Survey and population estimates, looked at all
types of non-diet soft drinks, including cans and bottles.

It also accounted for flavoured water and diluting drinks.

A separate survey published last month found Scottish children are eating 45g of sugar – the
equivalent of 10 teaspoons – every day, double the official guidelines for the youngest age
group.

Worryingly, they consume the same as two-and-a-half bags of sugar while attending friends’
birthday parties over the course of a year.

Scottish Tory health spokesman Miles Briggs said: “The SNP has clearly failed to tackle the
rising levels of child obesity in Scotland which is storing up enormous health problems for
kids in the future. We need to see action to address the obesogenic environment which has
developed in Scotland and that must include educating kids about having healthy habits, in-
cluding a balanced diet and appropriate levels of physical activity. “But, there’s no point
telling our kids how to live healthily if they can’t put it into practice.

“The SNP has to ensure that kids at school are encouraged to drink water and they must have
access to sports facilities.”


The Scottish Government said its diet and healthy weight delivery plan would include a target
to halve childhood obesity by 2030. A spokesman added: “We are currently consulting on
measures to tackle our nation’s damaging relationship with junk food, such as sugary drinks.
This includes restricting multi-buys that encourage their overconsumption.

, Microeconomics – Commentary 1 Name:


“The delivery plan also includes actions to tackle childhood obesity, which will start pre-
pregnancy and continue throughout school years and into adolescence.
“This includes more support for children, young people and families to achieve a healthy
weight, and training for frontline staff in services that work with them.”
Commentary –

The article discusses how the current situation regarding the increasing sugary drinks sales
among children aged between 2 and 15 in Scotland has become a growing concern. It shows
how the excessive consumption is linked to childhood obesity which can result in serious
health problems, such as heart disease and Type 2 diabetes.

The article analyses the various measures the Scottish government would like to implement
to curb the intake of sugary drinks. Professor Linda Bauld, Cancer Research UK’s prevention
expert is in complete support of taxing sugary drinks with the intention of eradicating Scot-
land’s obesogenic environment. This tax refers to an excise tax, wherein tax is imposed on
certain goods/ services, such that they become more expensive for producers to supply them,
and for consumers to purchase them.

The over consumption of sugar beverages is a perfect example of a negative externality of
consumption. It occurs when a consumption activity imposes external costs on 3rd parties
which are not involved in the transaction. In this case, sugary drinks impose high external

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