Abstract
This paper analyses the quantitative effects of using economic instruments in health policy on the
basis of price elasticities calculated from estimated demand systems. The nutritional effects of various
taxation schemes are compared for households in different age groups and social classes. Focusing
on the consumption of saturated fats, fibre and sugar; it is generally found that the impact of price
instruments is stronger for lower social classes than in other groups of the population. With regard
to age groups, it is mostly the youngest that decrease their demand for saturated fat in response to
price changes, while it is mostly the middle-aged who exhibit price responsiveness in their demand
for sugar. These groups are however not considered as key target groups for dietary regulation; thus
tax instruments may be effective in improving diets on average, but the design of the instruments and
the targeting of vulnerable groups with special needs should be done with care. It should be noted
that a tax on a single nutrient or food may have undesired effects on the demand for other food components,
though this may be avoided by introducing taxes/subsidies on several food products
simultaneously.
| Original language | English |
|---|---|
| Journal | Food Policy |
| Volume | 32 |
| Issue number | 5-6 |
| Pages (from-to) | 624-639 |
| Number of pages | 16 |
| ISSN | 0306-9192 |
| DOIs | |
| Publication status | Published - 2007 |
| Externally published | Yes |
