The Effects of a Fat Tax on French Households' Purchases: A Nutritional Approach

Allais, Olivier; Bertail, Patrice; Nichèle, Véronique

doi:10.1093/ajae/aap004

Cited by 135 publications

(134 citation statements)

References 29 publications

(46 reference statements)

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“…The characteristics of the data set are presented in detail in Allais et al (2010) 5 and we also used the price and expenditure elasticities published in that article. Food items were aggregated into 22 categories, and the empirical analysis considers four representative consumer types based on income quartiles and henceforth referred to as "modest", "lower average", "upper average", and "well-off".…”

Section: A Consumer Model Of Dietary Adjustment To Nutritional Recommmentioning

confidence: 99%

Economic assessment of nutritional recommendations

Irz

Leroy

Réquillart

et al. 2015

Journal of Health Economics

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Section: A Consumer Model Of Dietary Adjustment To Nutritional Recommmentioning

confidence: 99%

Economic assessment of nutritional recommendations

Irz

Leroy

Réquillart

et al. 2015

Journal of Health Economics

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“…According to the WHO, NCDs account for over 60% of the total deaths in the world, and half of these deaths occurred in low-and middle-income countries before age 70. 2 In addition to being a main factor in premature mortality, NCDs are also responsible for extended periods of morbidity and dependency. These impediments may dramatically reduce individuals' quality of life.…”

Section: Introductionmentioning

confidence: 99%

Earmarking and the political support of fat taxes

Cremer

Goulão

Roeder

2016

Journal of Health Economics

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in D I S C U S S I O N P A P E R S E R I E S Earmarking and the Political Support of Fat Taxes ABSTRACT Earmarking and the Political Support of Fat Taxes *A fat and a healthy good provide immediate gratification, and cause health costs or benefits in the long run, which are misperceived. Additionally, the fat good (healthy good) increases (decreases) health care costs by increasing (decreasing) the probability of suffering from a chronic disease in the future. Individuals differ in income and in their degree of misperceptions concerning the health effects of the consumption of fat and of healthy goods. The level of the fat tax is determined through majority voting. Individuals vote according to their misperceived utility function. Consequently, excessive fat consumption is not due to a self-control problem but due to information deficiencies or cognitive inability to process information. A fraction of the fat tax proceeds is "earmarked" to reduce health insurance premiums while the remaining fraction finances a subsidy on the healthy good. This earmarking rule is determined at a constitutional stage to maximize utilitarian or Rawlsian welfare, anticipating the induced political equilibrium. We show that the fat tax in the political equilibrium is always lower than the utilitarian fat tax. This is no longer necessarily true with a Rawlsian objective. The determination of the optimal earmarking rule is quite complex. Even in the utilitarian case, it is not just used to boost political support for the fat tax. Instead, it may involve a tradeoff between the fat tax and the healthy good subsidy.JEL Classification: I12, I18, D72

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“…The literature on obesity taxes finds that taxes on "unhealthy" food can change consumers' dietary choices, but their effectiveness is often limited and may induce decreases in health promoting nutrients (Allais, Bertail, and Nichèle 2010;Kuchlet et al 2005;and Powell and Chriqui, forthcoming). Taxes applied to foods or their calorie content tend to be regressive, falling disproportionally on poor consumers (Allais, Bertail, and Nichèle 2010;Miao, Beghin and Jensen forthcoming;and Smith, Lin, and Lee 2010).…”

Section: Introductionmentioning

confidence: 99%

“…Taxes applied to foods or their calorie content tend to be regressive, falling disproportionally on poor consumers (Allais, Bertail, and Nichèle 2010;Miao, Beghin and Jensen forthcoming;and Smith, Lin, and Lee 2010). Since food demand is price inelastic, these taxes can provide revenue to support other ways of addressing obesity (Powell and Chriqui forthcoming;Smith, Lin, and Lee 2010;and Kuchler, Tegene, and Harris 2005).…”

Section: Introductionmentioning

confidence: 99%

Accounting for Product Substitution in the Analysis of Food Taxes Targeting Obesity

2011

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We extend the existing literature on food taxes targeting obesity. We systematically incorporate the implicit substitution between added sugars and solid fats into a comprehensive food demand system and evaluate the effect of taxes on sugars and fats. The approach conditions how food and obesity taxes affect total calorie intake. The proposed methodology accounts for the ability of consumers to substitute leaner low-fat and lowsugar items for rich food items within the same food group. This substitution is integrated into a calibrated demand system in addition to the substitution among food groups, using recent food intake data and existing demand elasticities. Simulations of taxes on added sugars and solid fat show that their impact on consumption patterns is understated and the induced welfare loss is overstated when abstracting from the substitution possibilities within food groups. KeywordsFat, sugar, low-fat and low-sugar substitutes, food demand, health policy, nutrition, obesity, sweeteners, tax Accounting for Product Substitution in the Analysis of Food Taxes Targeting ObesityZhen Miao, John C. Beghin, and Helen H. Jensen* This draft: October 3, 2011 AbstractWe extend the existing literature on food taxes targeting obesity. We systematically incorporate the implicit substitution between added sugars and solid fats into a comprehensive food demand system and evaluate the effect of taxes on sugars and fats. The approach conditions how food and obesity taxes affect total calorie intake. The proposed methodology accounts for the ability of consumers to substitute leaner low-fat and low-sugar items for rich food items within the same food group. This substitution is integrated into a calibrated demand system in addition to the substitution among food groups, using recent food intake data and existing demand elasticities.Simulations of taxes on added sugars and solid fat show that their impact on consumption patterns is understated and the induced welfare loss is overstated when abstracting from the substitution possibilities within food groups.Keywords: Fat; sugar; low-fat and low-sugar substitutes; food demand; health policy nutrition; obesity; sweeteners; tax. Accounting for Product Substitution in the Analysis of Food Taxes Targeting ObesityThe United States faces a major health problem in the high prevalence of obesity and its underlying cause-an imbalance between energy intake and energy requirements (Ogden and Carroll, 2010;and Ogden et al. 2007). Obesity is associated with excessive morbidity and raises concerns about determinants of dietary choice. The growing prevalence of obesity and the social costs associated with poor dietary choices motivate government intervention because of externalities. Obesity has significant external effects on the health care system, employers, and other people (Bhattacharya and Bundorf 2005), which are typically not internalized when people make food choices. Health policies aim to encourage individuals to reduce excess calorie intake and choose healthier foods...

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The Effects of a Fat Tax on French Households' Purchases: A Nutritional Approach

Cited by 135 publications

References 29 publications

Economic assessment of nutritional recommendations

Economic assessment of nutritional recommendations

Earmarking and the political support of fat taxes

Accounting for Product Substitution in the Analysis of Food Taxes Targeting Obesity

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