Pricing and Economics

Food supply trends and obesity rates are strongly influenced by the economics of food choices, and many questions remain about the best ways to use pricing to influence public health. The aim of studies that fall within the areas of pricing and economics is to understand how food prices and changes in food prices relate to children’s diet and caloric intake.

 

Title: Can Soft Drink Taxes Reduce Population Weight?

RWJF Grant ID: 65053

Principal Investigator: Jason M. Fletcher, PhD

Organization: Yale University

Results: This paper evaluates the impact of changes in state soft drink taxes on body mass index (BMI), obesity and overweight. Researchers found that weight responds to changes in soft drink taxes; an increase of 1% in the state soft drink tax rate leads to a decrease in BMI of 0.003 points and the influence of soft drink taxes varies across demographic groups. Soft drink taxes have a larger influence on BMI and obesity for lower-income adults and Hispanics. Overall, researchers found that at the current tax rate, with an average of approximately 3%, the impact on BMI is small.

Source: Fletcher JM, Frisvold D, Tefft N. Can Soft Drink Taxes Reduce Population Weight? Contemp Econ Policy. 2010;28(1):23-35.

 

Title: Impact of Targeted Beverage Taxes on Higher- and Lower-Income Households

RWJF Grant ID: 65062

Principal Investigator: Chen Zhen, MS, PhD

Organization: Research Triangle Institute

Results: This article examines the health and financial impact of a tax on sugar-sweetened beverages (SSBs) on higher- and lower-income households. Using data from the 2006 Nielsen Homescan panel, researchers found that large taxes on SSBs have the potential to positively influence weight outcomes, especially for middle-income households. A 40 percent price increase would lead middle-income groups to consume 17 fewer calories per day of SSBs, and they would lose an average of 0.6 kg per year. Researchers also found that SSB taxes would generate substantial revenues. A 40 percent tax on all SSBs would raise approximately $2.5 billion in tax revenue.

Source: Finkelstein EA, Zhen C, Nonnemaker J, Todd JE. Impact of targeted beverage taxes on higher- and lower-income households. Arch Intern Med. 2010;170(22):2028-2034.

 

Title: The Effects of Soft Drink Taxes on Child and Adolescent Consumption and Weight Outcomes

RWJF Grant ID: 65053

Principal Investigator: Jason M. Fletcher, PhD

Organization: Yale University

Results: In this paper the authors investigate the potential for soft drink taxes to combat the rise in child and adolescent obesity levels through a reduction in consumption. Using state soft drink sales and excise tax information from 1989-2006 and National Health Examination and Nutrition Survey (NHANES) data, researchers find that currently practiced soft drink taxation in the United States leads to a moderate reduction in soft drink consumption by children and adolescents. The reduction in soda consumption is offset by increased consumption of other high-calorie drinks.

Source: Fletcher JM, Frisvold DE, Tefft N. The effects of soft drink taxes on child and adolescent consumption and weight outcomes. J Public Econ. 2010:967.

 

Title: Taxing Soft Drinks and Restricting Access to Vending Machines to Curb Child Obesity

RWJF Grant ID: 65053

Principal Investigator: Jason M. Fletcher, PhD

Organization: Yale University

Results: This paper focused on the impact changes in soft drink taxes and policies restricting school vending machine access had on soda consumption among children and adolescents. The researchers used data from the National Health and Nutrition Examination Survey (NHANES) III (1988-1994) and IV (1999-2006) and the Early Childhood Longitudinal Study-Kindergarten Cohort (ECLS-K). They concluded that as currently practiced, neither vending machine restrictions nor soft drink taxes will lead to noticeable weight reduction in children; typically imposed beverage taxes are neither large enough nor transparent enough to lead to meaningful behavior change, and policies restricting vending machine access in school do not reduce consumption because of the many other ways to obtain these drinks.

Source: Fletcher JM, Frisvold D, Tefft N. Taxing soft drinks and restricting access to vending machines to curb child obesity. Health Aff. 2010;29(5):1059-1066.

 

Title: Food Prices and Weight Gain During Elementary School: 5-year Update

RWJF Grant ID: 57931

Principal Investigator: Roland Sturm, PhD

Organization: RAND Corporation

Results: Elementary school children in communities with high produce prices are more likely to gain weight than those areas with low produce costs, according to a study published in Public Health. The study, Food Prices and Weight Gain During Elementary School: 5-year Update, showed that children who lived in the 15 areas where fruits and vegetables were most expensive (relative to cost-of-living) gained 4 pounds more between kindergarten and fifth grade than children living in the 15 areas where fruits and vegetables were least expensive.

Source: Sturm R, Datar A. Food prices and weight gain during elementary school: 5-year update. Public Health. 2008;122(11):1140-1143. 

 

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