The impact of tax reforms designed to encourage healthier grain consumption
AbstractIn this paper, we simulate the effects of tax reforms aimed at encouraging healthier grain consumption. We use a rich data set on household grain consumption in 2003 from the market research institute GfK Sweden, combined with information on the nutritional content of the consumption. We estimate behavioral parameters, which are used to simulate the impact on the average household of tax reforms entailing either a subsidy on commodities particularly rich in fiber or a subsidy of the fiber density in grain products. Our results suggest that to direct the fiber intake towards nutritional recommendations, reforms with a substantial impact on consumer prices are required. Regardless of the type of subsidy implemented, the increase in the intake of fiber is accompanied by unwanted increases in nutrients that are often overconsumed: fat, salt and sugar. Funding the subsidies by taxing these nutrients, or less healthy commodities, helps to counteract such developments.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Health Economics.
Volume (Year): 28 (2009)
Issue (Month): 3 (May)
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Web page: http://www.elsevier.com/locate/inca/505560
Consumer economics Food Health Taxation;
Other versions of this item:
- Nordström, Jonas & Thunström, Linda, 2007. "The Impact of Tax Reforms Designed to Encourage a Healthier Grain Consumption," UmeÃ¥ Economic Studies 717, Umeå University, Department of Economics.
- Nordström, Jonas & Thunström, Linda, 2007. "The Impact of Tax Reforms Designed to Encourage a Healthier Grain Consumption," HUI Working Papers 11, HUI Research.
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
- H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
- I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
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