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Impact of taxes on purchases of close substitute foods: analysis of cross-price elasticities using data from a randomized experiment.
- Source :
-
Nutrition journal [Nutr J] 2021 Sep 07; Vol. 20 (1), pp. 75. Date of Electronic Publication: 2021 Sep 07. - Publication Year :
- 2021
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Abstract
- Objective: To examine the effects of health-related food taxes on substitution and complementary purchases within food groups, including from unhealthier to healthier alternatives and between brands.<br />Methods: We used data from a virtual supermarket experiment with data from 4,259 shopping events linked to varying price sets. Substitution or complementary effects within six frequently purchased food categories were analyzed. Products' own- and cross-price elasticities were analyzed using Almost Ideal Demand System models.<br />Results: Overall, 37.5% of cross-price elasticities were significant (pā<ā0.05) and included values greater than 0.10. Supplementary and complementary effects were particularly found in the dairy, meats and snacks categories. For example, a 1% increase in the price of high saturated fat dairy was associated with a 0.18% (SE 0.06%) increase in purchases of low saturated fat dairy. For name- and home-brand products, significant substitution effects were found in 50% (nā=ā3) of cases, but only in one case this was above the 0.10 threshold.<br />Conclusions/policy Implications: Given the relatively low own-price elasticities and the limited substitution and complementary effects, relatively high taxes are needed to substantively increase healthy food purchases at the population level.<br />Trial Registration: This study included secondary analyses; the original trial was registered in the Australian New Zealand Clinical Trials Registry ACTRN12616000122459 .<br /> (© 2021. The Author(s).)
Details
- Language :
- English
- ISSN :
- 1475-2891
- Volume :
- 20
- Issue :
- 1
- Database :
- MEDLINE
- Journal :
- Nutrition journal
- Publication Type :
- Academic Journal
- Accession number :
- 34493309
- Full Text :
- https://doi.org/10.1186/s12937-021-00736-y