Demand Price Elasticity and Taxes on the Consumption of Sugar Sweetened Beverages in Argentina

Background: Currently there is an important debate in Argentina about the health and economic burden associated with chronic non-communicable diseases, and the potential impact associated with the high consumption of sugar-sweetened beverages (SSB) in children and adults. The objective of this study...

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Autores principales: Maceira, Daniel, Palacios, Alfredo Daniel, Espínola, Natalia Micaela, Mejía, Raúl
Formato: Objeto de conferencia
Lenguaje:Inglés
Publicado: 2018
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Acceso en línea:http://sedici.unlp.edu.ar/handle/10915/165418
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spelling I19-R120-10915-1654182024-04-29T20:02:03Z http://sedici.unlp.edu.ar/handle/10915/165418 Demand Price Elasticity and Taxes on the Consumption of Sugar Sweetened Beverages in Argentina Maceira, Daniel Palacios, Alfredo Daniel Espínola, Natalia Micaela Mejía, Raúl 2018-11 2018 2024-04-29T14:00:22Z en Ciencias Económicas price elasticity obesity soft drinks sugar sweetened beverages Argentina Background: Currently there is an important debate in Argentina about the health and economic burden associated with chronic non-communicable diseases, and the potential impact associated with the high consumption of sugar-sweetened beverages (SSB) in children and adults. The objective of this study is to assess the consumption of SSB in Argentina, to estimate the own price, cross-price and income elasticity of the demand for each type of beverage, and to simulate the effect of a price increase via taxes on the quantities consumed. Methods: Household micro-data was used to determine expenditure, purchased quantities, and implicit prices of different types of beverages (sodas, flavored waters, juices, etc.). This information was taken from the National Household Expenditure Survey (ENGHo) 2004/2005 and 2012/2013. Own price, cross price and income elasticity were estimated using the Almost Ideal Demand System (AIDS). Results: The own price elasticity of SSB presented values ranged between -1.10 and -1.15 (depending on the household income quintile). Therefore, if price increases of 10% via taxes, the quantity consumed of these beverages would be reduced between 11.0 and 11.5%. The income elasticity of the demand for SSB was estimated between 0.95 and 0.99, which implies that with an increase of 10% of household income, the quantity demanded increases between 9.5 and 9.9% (depending on the household income quintile). Conclusions: The consumption of SSB is sensitive to the increase in prices in Argentina. From a public health perspective, this suggests that a tax policy for these beverages would have a positive and effective effect in reducing their consumption. Facultad de Ciencias Económicas Objeto de conferencia Objeto de conferencia http://creativecommons.org/licenses/by-nc-sa/4.0/ Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International (CC BY-NC-SA 4.0) application/pdf
institution Universidad Nacional de La Plata
institution_str I-19
repository_str R-120
collection SEDICI (UNLP)
language Inglés
topic Ciencias Económicas
price elasticity
obesity
soft drinks
sugar sweetened beverages
Argentina
spellingShingle Ciencias Económicas
price elasticity
obesity
soft drinks
sugar sweetened beverages
Argentina
Maceira, Daniel
Palacios, Alfredo Daniel
Espínola, Natalia Micaela
Mejía, Raúl
Demand Price Elasticity and Taxes on the Consumption of Sugar Sweetened Beverages in Argentina
topic_facet Ciencias Económicas
price elasticity
obesity
soft drinks
sugar sweetened beverages
Argentina
description Background: Currently there is an important debate in Argentina about the health and economic burden associated with chronic non-communicable diseases, and the potential impact associated with the high consumption of sugar-sweetened beverages (SSB) in children and adults. The objective of this study is to assess the consumption of SSB in Argentina, to estimate the own price, cross-price and income elasticity of the demand for each type of beverage, and to simulate the effect of a price increase via taxes on the quantities consumed. Methods: Household micro-data was used to determine expenditure, purchased quantities, and implicit prices of different types of beverages (sodas, flavored waters, juices, etc.). This information was taken from the National Household Expenditure Survey (ENGHo) 2004/2005 and 2012/2013. Own price, cross price and income elasticity were estimated using the Almost Ideal Demand System (AIDS). Results: The own price elasticity of SSB presented values ranged between -1.10 and -1.15 (depending on the household income quintile). Therefore, if price increases of 10% via taxes, the quantity consumed of these beverages would be reduced between 11.0 and 11.5%. The income elasticity of the demand for SSB was estimated between 0.95 and 0.99, which implies that with an increase of 10% of household income, the quantity demanded increases between 9.5 and 9.9% (depending on the household income quintile). Conclusions: The consumption of SSB is sensitive to the increase in prices in Argentina. From a public health perspective, this suggests that a tax policy for these beverages would have a positive and effective effect in reducing their consumption.
format Objeto de conferencia
Objeto de conferencia
author Maceira, Daniel
Palacios, Alfredo Daniel
Espínola, Natalia Micaela
Mejía, Raúl
author_facet Maceira, Daniel
Palacios, Alfredo Daniel
Espínola, Natalia Micaela
Mejía, Raúl
author_sort Maceira, Daniel
title Demand Price Elasticity and Taxes on the Consumption of Sugar Sweetened Beverages in Argentina
title_short Demand Price Elasticity and Taxes on the Consumption of Sugar Sweetened Beverages in Argentina
title_full Demand Price Elasticity and Taxes on the Consumption of Sugar Sweetened Beverages in Argentina
title_fullStr Demand Price Elasticity and Taxes on the Consumption of Sugar Sweetened Beverages in Argentina
title_full_unstemmed Demand Price Elasticity and Taxes on the Consumption of Sugar Sweetened Beverages in Argentina
title_sort demand price elasticity and taxes on the consumption of sugar sweetened beverages in argentina
publishDate 2018
url http://sedici.unlp.edu.ar/handle/10915/165418
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AT espinolanataliamicaela demandpriceelasticityandtaxesontheconsumptionofsugarsweetenedbeveragesinargentina
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