IDEAS home Printed from https://ideas.repec.org/a/cup/agrerw/v36y2007i02p174-182_00.html
   My bibliography  Save this article

Taxing Food to Improve Health: Economic Evidence and Arguments

Author

Listed:
  • Cash, Sean B.
  • Lacanilao, Ryan D.

Abstract

Many observers have suggested that tax policy can be used to change the relative prices of foods in ways that will produce desirable health outcomes. We briefly review the economic evidence regarding such claims, and discuss several conceptual and pragmatic issues surrounding the use of such interventions to achieve public health objectives.

Suggested Citation

  • Cash, Sean B. & Lacanilao, Ryan D., 2007. "Taxing Food to Improve Health: Economic Evidence and Arguments," Agricultural and Resource Economics Review, Cambridge University Press, vol. 36(2), pages 174-182, October.
  • Handle: RePEc:cup:agrerw:v:36:y:2007:i:02:p:174-182_00
    as

    Download full text from publisher

    File URL: https://www.cambridge.org/core/product/identifier/S1068280500007012/type/journal_article
    File Function: link to article abstract page
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Gustavsen, Geir Waehler, 2005. "Public Policies and the Demand for Carbonated Soft Drinks: A Censored Quantile Regression Approach," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24737, European Association of Agricultural Economists.
    2. Boizot-Szantai, Christine & Etile, Fabrice, 2005. "The Food Prices / Body Mass Index Relationship: Theory and Evidence from a Sample of French Adults," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24734, European Association of Agricultural Economists.
    3. Josef Schmidhuber, 2004. "The Growing Global Obesity Problem: Some Policy Options to Address It," The Electronic Journal of Agricultural and Development Economics, Food and Agriculture Organization of the United Nations, vol. 1(2), pages 272-290.
    4. Kuchler, Fred & Tegene, Abebayehu & Harris, James Michael, 2004. "Taxing Snack Foods: What to Expect for Diet and Tax Revenues," Agricultural Information Bulletins 33607, United States Department of Agriculture, Economic Research Service.
    5. O'Donoghue, Ted & Rabin, Matthew, 2006. "Optimal sin taxes," Journal of Public Economics, Elsevier, vol. 90(10-11), pages 1825-1849, November.
    6. Timothy J. Richards & Paul M. Patterson & Abebayehu Tegene, 2007. "Obesity And Nutrient Consumption: A Rational Addiction?," Contemporary Economic Policy, Western Economic Association International, vol. 25(3), pages 309-324, July.
    7. Sean B. Cash & Ellen W. Goddard & Mel Lerohl, 2006. "Canadian Health and Food: The Links between Policy, Consumers, and Industry," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 54(4), pages 605-629, December.
    8. Gustavsen, Geir Waehler & Rickertsen, Kyrre, 2004. "For Whom Reduced Prices Count: A Censored Quantile Regression Analysis Of Vegetable Demand," 2004 Annual meeting, August 1-4, Denver, CO 20172, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    9. Fred Kuchler & Abebayehu Tegene & J. Michael Harris, 2005. "Taxing Snack Foods: Manipulating Diet Quality or Financing Information Programs?," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 27(1), pages 4-20.
    10. Schroeter, Christiane & Lusk, Jayson & Tyner, Wallace, 2008. "Determining the impact of food price and income changes on body weight," Journal of Health Economics, Elsevier, vol. 27(1), pages 45-68, January.
    11. Clark, J. Stephen & Levedahl, J. William, 2006. "Will Fat Taxes Cause Americans to Become Fatter? Some Evidence from US Meats," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25710, International Association of Agricultural Economists.
    12. Julian M. Alston & Daniel A. Sumner & Stephen A. Vosti, 2006. "Are Agricultural Policies Making Us Fat? Likely Links between Agricultural Policies and Human Nutrition and Obesity, and Their Policy Implications ," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 28(3), pages 313-322.
    13. Fred Kuchler & Abebayehu Tegene & J. Michael Harris, 2005. "Taxing Snack Foods: Manipulating Diet Quality or Financing Information Programs?," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 27(1), pages 4-20.
    14. Becker, Gary S & Murphy, Kevin M, 1988. "A Theory of Rational Addiction," Journal of Political Economy, University of Chicago Press, vol. 96(4), pages 675-700, August.
    15. Cash, Sean B. & Sunding, David L. & Zilberman, David, 2004. "Fat Taxes And Thin Subsidies: Prices, Diet, And Health Outcomes," 2004 Annual meeting, August 1-4, Denver, CO 19961, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    16. French, S.A. & Jeffery, R.W. & Story, M. & Breitlow, K.K. & Baxter, J.S. & Hannan, P. & Snyder, M.P., 2001. "Pricing and promotion effects on low-fat vending snack purchases: The CHIPS study," American Journal of Public Health, American Public Health Association, vol. 91(1), pages 112-117.
    17. Smed, Sinne & Jensen, Jorgen Dejgaard & Denver, Sigrid, 2005. "Differentiated Food Taxes as a Tool in Health and Nutrition Policy," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24579, European Association of Agricultural Economists.
    18. French, S.A. & Jeffery, R.W. & Story, M. & Hannan, P. & Snyder, M.P., 1997. "A pricing strategy to promote low-fat snack choices through vending machines," American Journal of Public Health, American Public Health Association, vol. 87(5), pages 849-851.
    19. Asfaw, Abay, 2007. "Do Government Food Price Policies Affect the Prevalence of Obesity? Empirical Evidence from Egypt," World Development, Elsevier, vol. 35(4), pages 687-701, April.
    20. Jacobson, M.F. & Brownell, K.D., 2000. "Small taxes on soft drinks and snack foods to promote health," American Journal of Public Health, American Public Health Association, vol. 90(6), pages 854-857.
    21. Chouinard Hayley H & Davis David E & LaFrance Jeffrey T & Perloff Jeffrey M, 2007. "Fat Taxes: Big Money for Small Change," Forum for Health Economics & Policy, De Gruyter, vol. 10(2), pages 1-30, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gustavsen, Geir Wæhler & Rickertsen, Kyrre, 2013. "Adjusting VAT rates to promote healthier diets in Norway: A censored quantile regression approach," Food Policy, Elsevier, vol. 42(C), pages 88-95.
    2. Joan Gil & Guillem López Casasnovas & Toni Mora, 2013. "Taxation of unhealthy consumption of food and drinks: An updated literature review," Hacienda Pública Española / Review of Public Economics, IEF, vol. 207(4), pages 119-140, December.
    3. Alberto Gago & Xavier Labandeira & Xiral López Otero, 2014. "A Panorama on Energy Taxes and Green Tax Reforms," Hacienda Pública Española / Review of Public Economics, IEF, vol. 208(1), pages 145-190, March.
    4. Matthias Staudigel, 2012. "How do obese people afford to be obese? Consumption strategies of Russian households," Agricultural Economics, International Association of Agricultural Economists, vol. 43(6), pages 701-714, November.
    5. Arteaga, Julio Cesar & Flores, Daniel & Luna, Edgar, 2017. "The effect of a soft-drink tax in Mexico: a time series approach," MPRA Paper 80831, University Library of Munich, Germany.
    6. Romana Khan & Kanishka Misra & Vishal Singh, 2016. "Will a Fat Tax Work?," Marketing Science, INFORMS, vol. 35(1), pages 10-26, January.
    7. Jayson L. Lusk & Christiane Schroeter, 2012. "When Do Fat Taxes Increase Consumer Welfare?," Health Economics, John Wiley & Sons, Ltd., vol. 21(11), pages 1367-1374, November.
    8. Cash, Sean B. & McAlister, Anna R., 2017. "Young Food Consumers: How do Children Respond to Point-of-Purchase Interventions?," 2017 Allied Social Sciences Association (ASSA) Annual Meeting, January 6-8, 2017, Chicago, Illinois 252700, Agricultural and Applied Economics Association.
    9. Guy E.J. Faulkner & Paul Grootendorst & Van Hai Nguyen & Tatiana Andreyeva & Kelly Arbour-Nicitopoulos & Chris Auld & Sean B. Cash & John Cawley & Peter Donnelly & Adam Drewnowski & Laurette Dubé & R, 2011. "Economic Instruments for Obesity Prevention: Results of a Scoping Review and Modified Delphi Survey," Monash Economics Working Papers 31-11, Monash University, Department of Economics.
    10. Chen, Xiu & Kaiser, Harry M. & Rickard, Bradley J., 2015. "The impacts of inclusive and exclusive taxes on healthy eating: An experimental study," Food Policy, Elsevier, vol. 56(C), pages 13-24.
    11. Donald L. Alexander & Jon R. Neill, 2017. "Estimating the Corrective Tax for Goods whose Consumption Affects the Consumer’s Health," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 45(1), pages 103-117, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Cash, Sean B. & Lacanilao, Ryan D. & Adamowicz, Wiktor L. & Raine, Kim, 2008. "An Experimental Investigation of the Impact of Fat Taxes: Prices Effects, Food Stigma, and Information Effects on Economics Instruments to Improve Dietary Health," Consumer and Market Demand Network Papers 45499, University of Alberta, Department of Resource Economics and Environmental Sociology.
    2. Zhen Miao & John C. Beghin & Helen H. Jensen, 2013. "Accounting For Product Substitution In The Analysis Of Food Taxes Targeting Obesity," Health Economics, John Wiley & Sons, Ltd., vol. 22(11), pages 1318-1343, November.
    3. Zhen Miao & John C. Beghin & Helen H. Jensen, 2012. "Taxing Sweets: Sweetener Input Tax Or Final Consumption Tax?," Contemporary Economic Policy, Western Economic Association International, vol. 30(3), pages 344-361, July.
    4. Chouinard, Hayley H & Davis, David E. & LaFrance, Jeffrey T. & Perloff, Jeffrey M, 2005. "The Effects of a Fat Tax on Dairy Products," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt60t1f3tn, Department of Agricultural & Resource Economics, UC Berkeley.
    5. Bonnet, Céline & Réquillart, Vincent, 2013. "Tax incidence with strategic firms in the soft drink market," Journal of Public Economics, Elsevier, vol. 106(C), pages 77-88.
    6. Jason M. Fletcher & David Frisvold & Nathan Tefft, 2010. "Can Soft Drink Taxes Reduce Population Weight?," Contemporary Economic Policy, Western Economic Association International, vol. 28(1), pages 23-35, January.
    7. Alston, Julian M. & Sumner, Daniel A. & Vosti, Stephen A., 2008. "Farm subsidies and obesity in the United States: National evidence and international comparisons," Food Policy, Elsevier, vol. 33(6), pages 470-479, December.
    8. Cash, Sean B. & McAlister, Anna R., 2017. "Young Food Consumers: How do Children Respond to Point-of-Purchase Interventions?," 2017 Allied Social Sciences Association (ASSA) Annual Meeting, January 6-8, 2017, Chicago, Illinois 252700, Agricultural and Applied Economics Association.
    9. Qi Zhang & Zhuo Chen & Norou Diawara & Youfa Wang, 2011. "Prices of Unhealthy Foods, Food Stamp Program Participation, and Body Weight Status Among U.S. Low-Income Women," Journal of Family and Economic Issues, Springer, vol. 32(2), pages 245-256, June.
    10. Stéphan Marette & Jutta Roosen & Sandrine Blanchemanche, 2008. "Taxes and subsidies to change eating habits when information is not enough: an application to fish consumption," Journal of Regulatory Economics, Springer, vol. 34(2), pages 119-143, October.
    11. James Binkley & Alla Golub, 2010. "Household Food Choice In Four Food Categories:Healthy Or Unhealthy?," Working Papers 10-2, Purdue University, College of Agriculture, Department of Agricultural Economics.
    12. Darmon, N. & Lacroix, A. & Muller, L. & Ruffieux, B., 2011. "Experimental economics shows how food price policies may improve diet while increasing socioeconomic inequalities in nutrition," Working Papers 201104, Grenoble Applied Economics Laboratory (GAEL).
    13. Ehmke, Mariah D. & Willson, Tina M. & Schroeter, Christiane & Hart, Ann Marie & Coupal, Roger H., 2009. "Obesity Economics for the Western United States," Western Economics Forum, Western Agricultural Economics Association, vol. 8(2), pages 1-13.
    14. Olivier Allais & Patrice Bertail & Véronique Nichèle, 2010. "The Effects of a Fat Tax on French Households' Purchases: A Nutritional Approach," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 92(1), pages 228-245.
    15. Alberto Gago & Xavier Labandeira & Xiral López Otero, 2014. "A Panorama on Energy Taxes and Green Tax Reforms," Hacienda Pública Española / Review of Public Economics, IEF, vol. 208(1), pages 145-190, March.
    16. Cosnard, Lionel & Laborde, David, 2019. "Taxing Sugar and Sugary Products to Reduce Obesity: A CGE Assessment of Several Tax Policies," Conference papers 333067, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    17. Nordström, Jonas & Thunström, Linda, 2009. "The impact of tax reforms designed to encourage healthier grain consumption," Journal of Health Economics, Elsevier, vol. 28(3), pages 622-634, May.
    18. Pieroni, Luca & Salmasi, Luca, 2010. "Body weight and socio-economic determinants: quantile estimations from the British Household Panel Survey," ISER Working Paper Series 2010-41, Institute for Social and Economic Research.
    19. Staudigel, Matthias, 2011. "How (much) do food prices contribute to obesity in Russia?," Economics & Human Biology, Elsevier, vol. 9(2), pages 133-147, March.
    20. Schroeter, Christiane & Lusk, Jayson & Tyner, Wallace, 2008. "Determining the impact of food price and income changes on body weight," Journal of Health Economics, Elsevier, vol. 27(1), pages 45-68, January.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cup:agrerw:v:36:y:2007:i:02:p:174-182_00. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kirk Stebbing (email available below). General contact details of provider: https://www.cambridge.org/age .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.