The Effects of Farm Commodity and Retail Food Policies on Obesity and Economic Welfare in the United States
AbstractMany commentators claim that farm subsidies have contributed significantly to the "obesity epidemic" by making fattening foods relatively cheap and abundant and, symmetrically, that taxing "unhealthy" commodities or subsidizing "healthy" commodities would contribute to reducing obesity rates. In this article we use an equilibrium displacement model to estimate and compare the economic welfare effects from a range of hypothetical farm commodity and retail food policies as alternative mechanisms for encouraging consumption of healthy food or discouraging consumption of unhealthy food, or both. We find that, compared with retail taxes on fat, sugar, or all food, or subsidies on fruits and vegetables at the farm or retail levels, a tax on calories would be the most efficient obesity policy. A tax on calories would have the lowest deadweight loss per pound of fat reduction in average adult weight, and would yield a net social gain once the impact on public health care expenditures is considered. Copyright 2012, Oxford University Press.
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Bibliographic InfoArticle provided by Agricultural and Applied Economics Association in its journal American Journal of Agricultural Economics.
Volume (Year): 94 (2012)
Issue (Month): 3 ()
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- Liaukonyte, Jura & Rickard, Bradley J. & Kaiser, Harry M. & Richards, Timothy J., 2010. "Evaluating advertising strategies for fruits and vegetables and the implications for obesity in the United States," Working Papers 126972, Cornell University, Department of Applied Economics and Management.
- repec:ags:aare13:148420 is not listed on IDEAS
- Alston, Julian M. & Okrent, Abigail M. & Parks, Joanna, 2013.
"Effects of U.S. Public Agricultural R&D on U.S. Obesity and its Social Costs,"
2013 Annual Meeting, August 4-6, 2013, Washington, D.C.
149796, Agricultural and Applied Economics Association.
- Alston, Julian M. & Okrent, Abigail M. & Parks, Joanna, 2013. "Effects of U.S. Public Agricultural R&D on U.S. Obesity and its Social Costs," 2013 Conference (57th), February 5-8, 2013, Sydney, Australia 152174, Australian Agricultural and Resource Economics Society.
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