One suggested solution is combining lower prices of healthier pro

One suggested solution is combining lower prices of healthier products with tax increases on unhealthier food products (Nordstrom and Thunstrom, 2009). Epstein

found that a price increase of high-caloric foods was effective in decreasing the purchase of these items while increasing the purchase of low-caloric foods. Giessen and colleagues also concluded that a > 25% tax rise on high-caloric foods is effective in decreasing the demand for calories (Giesen et al., 2011a and Giesen et al., 2011b). The current study, however, does not provide support for increasing unhealthier food prices. In addition, results of the study could not confirm the hypothesis that discounts on healthier food products are most effective when supported by price increases of unhealthier products, nor that higher energy purchases may be prevented using such a combination of strategies. Nordström et al. found similar Y-27632 order results in a simulation modeling study Epigenetic inhibitor where the increase in fat consumption remained prevalent in simulations combining a subsidizing measure with a tax on unhealthier products (Nordstrom and Thunstrom, 2011). Nevertheless, the current study found that price increases lowered the amount of unhealthy food purchases to some extent. The absence of significant interaction effects may be due to a power problem;

our sample size was not specifically powered for these interaction effects. Moreover, our power calculations were based on quite large Adenylyl cyclase effect sizes, meaning that our sample size was likely too small to detect smaller effects of the price increases. It is therefore important to study the combined effects of taxes and subsidies further in larger populations. Moreover, the price increase levels in this study were relatively low whereas the price discounts ran up to 50%. We opted for these levels based on the results of a previously conducted Delphi study where it was found that subsidies are more politically feasible than taxes (Waterlander et al., 2010a). Nevertheless, higher

tax increases can be feasible when considering the revenue they bring, especially given the current budget deficits many governments are facing. We therefore propose that increased taxes on unhealthier food products could be effective when they are high and prevent shifting to cheaper (unhealthier) alternatives. Another important aspect to consider is that our results may be an underestimation of price strategies in practice, because the pricing strategies were silent. Normally, when products are sold at lower prices, effort is made in drawing people’s attention toward this by using signs or advertisements (Anderson and Simester, 1998 and Blattberg et al., 1995). This may apply to price increases; it may be more important to tell people that products are taxed than to actually tax it (Lacaniloa et al., 2011).

Leave a Reply

Your email address will not be published. Required fields are marked *

*

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>