• A study by Bokhari FA et al. published in the International Journal of Industrial Organization explored using taxes to reduce antibiotic overuse and combat antibiotic resistance (AMR). 

• This significant global threat could cause millions of deaths by 2050. 

• Overusing broad-spectrum antibiotics is a crucial driver of AMR, and narrow-spectrum drugs should be used when possible. 

• Researchers propose taxing GP surgeries for using certain broad-spectrum antibiotics to incentivize using narrow-spectrum drugs, potentially reducing testing time and costs.

• Findings indicate that taxing broad-spectrum antibiotics can effectively lower their usage and promote a switch to narrow-spectrum alternatives. 

• A 20% tax on all antibiotics could reduce overall use by 12.7%, but it is less effective for the most problematic antibiotics. 

• Conversely, a targeted 20% tax on specific broad-spectrum antibiotics linked to AMR is more effective, reducing their use by 37.7% with a minor overall reduction (2.38%).

• Potential drawbacks include a minor consumer welfare loss and the need for broad-spectrum antibiotics in time-sensitive situations. 

• However, the benefits of reducing AMR outweigh these drawbacks.

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