Towards a Healthy and Sustainable Economy: The Impact of Tobacco Taxes on Social Equity and Public Health in Mexico

Frida Guadalupe Atondo-García — 2025-03-30

Context. This review analyzes recent studies (2019–2024) on the persistent public health crisis caused by smoking, especially in low- and middle-income countries such as Mexico, where poverty exacerbates its impact. Current health effects are examined according to the use of tax revenues, the impact of updating taxes with inflation, cessation rates, and variation in consumption with new socioeconomic evidence.

Problem. Tobacco use in Mexico remains inelastic, perpetuating health and economic burdens for low-income families and increased consumption among the wealthiest. This generates secondary poverty, where incomes fall below the poverty line after spending on tobacco.

Purpose. This study seeks to promote greater equity and sustainability in the country's public health system, providing evidence based on a multidisciplinary and innovative approach to strengthen fiscal policies on tobacco.

Methodology. Our primary objective was to analyze the effectiveness and implications of tobacco taxation policies between 2019 and 2024 due to fiscal policy changes in the current government. We conducted the literature search through PubMed, utilizing VosViewer software.

Theoretical and Practical Findings. In the theoretical field, it combines health economics, behavioral economics, and fiscal policy to analyze tax equity and impact on health. In practice, it provides evidence to design taxes that reduce consumption, increase incomes and improve public health, aligning with Sustainable Development Goals (SDGs) 3 (Good health and well-being) and 10 (Reduced inequalities).

Originality based on a multidisciplinary approach that promotes innovation for sustainable development. This work integrates health economics, behavioral economics, and fiscal policy, aligning with the guidelines of the Oslo Handbook on innovation in public policy. The combination of these approaches allows for a more comprehensive assessment of the economic and social impact of tobacco taxes, offering new tools for the formulation of effective and sustainable public policies.

Conclusions and limitations. This literature review provides a timely update for decision-making studies and offers relevant insights for academia and policymakers. The COVID-19 health crisis deprioritized the treatment of tobacco-related illnesses like lung cancer and acute myocardial infarction, among fifty other diseases, potentially affecting data from 2020–2021.

Innovation for Healthy Eating: Front-of-Package Labeling as a Behavioral Change Tool in Jalisco, Mexico

Juan Carlos Guimond-Ramos — 2025-05-24

Context. The rise in non-communicable diseases in Mexico, partly due to the consumption of energy-dense foods, has led to public policies modifying eating habits. Among them, front-of-package warning labeling (FOP) stands out as a low cognitive-cost strategy aligned with nudge theory and Sustainable Development Goal (SDG3) of the 2030 Agenda.

Problem. There is uncertainty about the effectiveness of the front-of-package warning label (FOP) in reducing unhealthy food consumption, especially in regions like Jalisco. Moreover, few empirical evaluations assess its economic impact on consumer behavior.

Purpose. To estimate the effect of front-of-package labeling on quarterly spending by urban households in Jalisco on energy-dense foods from 2016 to 2022.

Methodology. A quasi-experimental design with the “difference-in-differences” method was used through STATA19 software, based on National Household Income and Expenditure Survey (NHICS) data for 2016, 2020, and 2022. Urban (treatment) and rural (control) households were compared regarding their spending on twelve energy-dense products, according to NOM-051.

Theoretical and practical findings. FOP warning labeling effectively reduced spending on 10 of 12 evaluated products. However, the effect was null or adverse for sugary drinks and salty crackers. Theoretically, the visual nudge approach was validated as a public policy tool, though limited for culturally embedded foods.

Originality. This study adopts a multidisciplinary perspective integrating behavioral economics, public nutrition, and policy, promoting innovation for sustainable development. It supports SDG3 by identifying where labeling works or fails and suggests evidence-based policy refinements.

Conclusions and limitations. Labeling is useful but insufficient alone. It should be reinforced by fiscal measures (e.g., taxes on sugary drinks) and more accessible visual designs. This study is limited to Jalisco and the early FOP warning labeling phase, which constrains its generalizability. Broader studies in other states and later policy phases are advised.

Scientia et PRAXIS

Towards a Healthy and Sustainable Economy: The Impact of Tobacco Taxes on Social Equity and Public Health in Mexico

Innovation for Healthy Eating: Front-of-Package Labeling as a Behavioral Change Tool in Jalisco, Mexico