Understanding Price Elasticities to Inform Public Health Research and Intervention Studies: Key Issues

Abstract

Pricing policies such as taxes and subsidies are important tools in preventing and controlling a range of threats to public health. This is particularly so in tobacco and alcohol control efforts and efforts to change dietary patterns and physical activity levels as a means of addressing increases in noncommunicable diseases. To understand the potential impact of pricing policies, it is critical to understand the nature of price elasticities for consumer products. For example, price elasticities are key parameters in models of any food tax or subsidy that aims to quantify health impacts and cost-effectiveness. We detail relevant terms and discuss key issues surrounding price elasticities to inform public health research and intervention studies.

Sociodemographic Differences in Fast Food Price Sensitivity

“…We lack price data for eating at non-fast food restaurants and thus could not further evaluate these pricing dynamics. Accounting for cross-price elasticities (the impact of a specific food price on the consumption of other foods) is a pervasive challenge in food price-demand studies 42 . Limitations of our data did not allow us to better delineate price-consumption dynamics.…”

Global sugar guidelines: an opportunity to strengthen nutrition policy

“…Taxation or other price-based policies may also be more effective among those who consume excessive amounts of sugar (21) . For example, a study by Gustavsen in Norway found that tax-induced price increases in soft drinks could reduce consumption by more than twice as much among high consumers as among those who consumed the lowest amounts (22) .…”

Modelling the health impact of food taxes and subsidies with price elasticities: The case for additional scaling of food consumption using the total food expenditure elasticity

“…For example, how much does a tax on one food affect consumption of other foods? PE are commonly used to convert a food tax/subsidy intervention to a change in total diet [19] which is then linked to changes in BMI and other risk factors, then disease rates, and then to morbidity and mortality.…”