Elasticity

There is no doubt that raising the price of sugary beverages by increasing the tax reduces consumption. A new study once again looks at how price impacts demand. Whether this reduction in consumption has the desired outcome of improving health remains unknown and frankly unstudied.
How can we move scientific research in directions that are felt to be "socially optimal"? While there is no stick to get science redirected, government funding can supply the carrot. How big a carrot is needed? That depends. Let's take a look.