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The impact of taxation and signposting on diet: an online field study with breakfast cereals and soft drinks

Author

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  • Daniel John Zizzo

    (University of Queensland)

  • Melanie Parravano

    (BHRU and Newcastle University)

  • Ryota Nakamura

    (Hitotsubashi University)

  • Suzanna Forwood

    (Anglia Ruskin University)

  • Marc Suhrcke

    (University of York
    Luxembourg Institute of Socio-economic Research)

Abstract

We present a large scale study where a nationally representative sample of 1000 participants were asked to make real purchases within an online supermarket platform. The study captured the effect of price changes, and of the signposting of such changes, for breakfast cereals and soft drinks. We find that such taxes are an effective means of altering food purchasing, with a 20% rate being sufficient to make a significant impact if (and only if) the tax is signposted. Signposting represents a complementary “nudge” policy that could enhance the impact of the tax, though its effectiveness depends on the product category.

Suggested Citation

  • Daniel John Zizzo & Melanie Parravano & Ryota Nakamura & Suzanna Forwood & Marc Suhrcke, 2021. "The impact of taxation and signposting on diet: an online field study with breakfast cereals and soft drinks," Experimental Economics, Springer;Economic Science Association, vol. 24(4), pages 1294-1324, December.
    • Handle: RePEc:kap:expeco:v:24:y:2021:i:4:d:10.1007_s10683-020-09698-0
    DOI: 10.1007/s10683-020-09698-0
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    2. Belot, Michèle & James, Jonathan & Vecchi, Martina & Vitt, Nicolai, 2019. "Stress and Food Preferences: A Lab Experiment with Low-SES Mothers," IZA Discussion Papers 12674, Institute of Labor Economics (IZA).
    3. Luca A. Panzone & Natasha Auch & Daniel John Zizzo, 2024. "Nudging the Food Basket Green: The Effects of Commitment and Badges on the Carbon Footprint of Food Shopping," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 87(1), pages 89-133, January.
    4. Panzone, Luca A. & Ulph, Alistair & Zizzo, Daniel John & Hilton, Denis & Clear, Adrian, 2021. "The impact of environmental recall and carbon taxation on the carbon footprint of supermarket shopping," Journal of Environmental Economics and Management, Elsevier, vol. 109(C).
    5. Schruff-Lim, Eva-Maria & Van Loo, Ellen J. & van Kleef, Ellen & van Trijp, Hans C.M., 2023. "Turning FOP nutrition labels into action: A systematic review of label+ interventions," Food Policy, Elsevier, vol. 120(C).
    6. Ulph, Alistair & Panzone, Luca & Hilton, Denis, 2023. "Do rational people sometimes act irrationally? A dynamic self-regulation model of sustainable consumer behavior," Economic Modelling, Elsevier, vol. 126(C).
    7. Blake, Miranda R. & Lancsar, Emily & Peeters, Anna & Backholer, Kathryn, 2019. "Sugar-sweetened beverage price elasticities in a hypothetical convenience store," Social Science & Medicine, Elsevier, vol. 225(C), pages 98-107.
    8. Yu SHEN & Wenkai SUN, 2023. "Information and avoidance behaviour: The effect of air pollution disclosure on labour supply in China," International Labour Review, International Labour Organization, vol. 162(4), pages 665-686, December.
    9. Vitt, Nicolai & James, Jonathan & Belot, Michèle & Vecchi, Martina, 2021. "Daily stressors and food choices: A lab experiment with low-SES mothers," European Economic Review, Elsevier, vol. 136(C).
    10. Lohmann, Paul M & Gsottbauer, Elisabeth & Farrington, James & Human, Steve & Reisch, Lucia A, 2024. "Choice architecture promotes sustainable choices in online food-delivery apps," LSE Research Online Documents on Economics 125835, London School of Economics and Political Science, LSE Library.

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    More about this item

    Keywords

    Taxes; Signposting; Healthy diet; Nudges; Public health;
    All these keywords.

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior

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