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Relative price changes as a tool to stimulate more healthy food choices – A Danish household panel study

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  • Juhl, Hans Jørn
  • Jensen, Morten Berg

Abstract

The increased prevalence of lifestyle-related illnesses particularly in western countries calls for public action. A poor diet is a key explanatory factor to this development. Previous research has addressed the problem of unhealthy food consumption behavior by looking at how taxes may function as an instrument to change purchase behavior from less healthy products to healthier ones. In this paper we address this issue by looking at the effects of discounts depending on whether healthy or less healthy products are available at a discount. Our study is based on weekly purchase data from a Danish household panel for the period 2010–2011. Interestingly, from a public health perspective our findings suggest that there is an asymmetric effect of discounts depending on the fat content of the product. Furthermore, our results point at two classes of consumers where the asymmetric effects go in different directions.

Suggested Citation

  • Juhl, Hans Jørn & Jensen, Morten Berg, 2014. "Relative price changes as a tool to stimulate more healthy food choices – A Danish household panel study," Food Policy, Elsevier, vol. 46(C), pages 178-182.
    • Handle: RePEc:eee:jfpoli:v:46:y:2014:i:c:p:178-182
    DOI: 10.1016/j.foodpol.2014.03.008
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    References listed on IDEAS

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    1. Andreyeva, T. & Long, M.W. & Brownell, K.D., 2010. "The impact of food prices on consumption: A systematic review of research on the price elasticity of demand for food," American Journal of Public Health, American Public Health Association, vol. 100(2), pages 216-222.
    2. 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.
    3. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521766555, January.
    4. Bhavani Shankar & Jose Brambila‐Macias & Bruce Traill & Mario Mazzocchi & Sara Capacci, 2013. "An Evaluation Of The Uk Food Standards Agency'S Salt Campaign," Health Economics, John Wiley & Sons, Ltd., vol. 22(2), pages 243-250, February.
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    Cited by:

    1. Cornelsen, Laura & Mazzocchi, Mario & Smith, Richard D., 2019. "Fat tax or thin subsidy? How price increases and decreases affect the energy and nutrient content of food and beverage purchases in Great Britain," Social Science & Medicine, Elsevier, vol. 230(C), pages 318-327.
    2. Caro, Juan Carlos & Ng, Shu Wen & Taillie, Lindsey Smith & Popkin, Barry M., 2017. "Designing a tax to discourage unhealthy food and beverage purchases: The case of Chile," Food Policy, Elsevier, vol. 71(C), pages 86-100.

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    Keywords

    Low fat; Discount; Choice;
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