Effects of the Danish saturated fat tax on the demand for meat and dairy products

Research output: Contribution to journalJournal articlepeer-review

Standard

Effects of the Danish saturated fat tax on the demand for meat and dairy products. / Jensen, Jørgen Dejgård; Smed, Sinne; Aarup, Lars; Nielsen, Erhard.

In: Public Health Nutrition, Vol. 19, No. 17, 2016, p. 3085-3094.

Research output: Contribution to journalJournal articlepeer-review

Harvard

Jensen, JD, Smed, S, Aarup, L & Nielsen, E 2016, 'Effects of the Danish saturated fat tax on the demand for meat and dairy products', Public Health Nutrition, vol. 19, no. 17, pp. 3085-3094. https://doi.org/10.1017/S1368980015002360

APA

Jensen, J. D., Smed, S., Aarup, L., & Nielsen, E. (2016). Effects of the Danish saturated fat tax on the demand for meat and dairy products. Public Health Nutrition, 19(17), 3085-3094. https://doi.org/10.1017/S1368980015002360

Vancouver

Jensen JD, Smed S, Aarup L, Nielsen E. Effects of the Danish saturated fat tax on the demand for meat and dairy products. Public Health Nutrition. 2016;19(17):3085-3094. https://doi.org/10.1017/S1368980015002360

Author

Jensen, Jørgen Dejgård ; Smed, Sinne ; Aarup, Lars ; Nielsen, Erhard. / Effects of the Danish saturated fat tax on the demand for meat and dairy products. In: Public Health Nutrition. 2016 ; Vol. 19, No. 17. pp. 3085-3094.

Bibtex

@article{cbab10edefff46aabdd12ba6212e513a,
title = "Effects of the Danish saturated fat tax on the demand for meat and dairy products",
abstract = "Objective: Taxation of unhealthy food is considered a regulation tool to improve diets. In 2011 Denmark introduced a tax on saturated fat in food products, the first country in the world to do so. The objective of the present paper is to investigate the effects of the tax on consumers{\textquoteright} intake of saturated fat within three different types of food product group: minced beef, regular cream and sour cream. Design: We use an augmented version of the Linearized Almost Ideal Demand System (LAIDS) functional form for econometric analysis, allowing for tax-induced structural breaks. Setting: Data originate from one of the largest retail chains in Denmark (Coop Danmark) and cover January 2010 to October 2012, with monthly records of sales volume, sales revenue and information about specific campaigns from 1293 stores. Results: The Danish fat tax had an insignificant or small negative effect on the price for low- and medium-fat varieties, and led to a 13–16 % price increase for high-fat varieties of minced beef and cream products. The tax induced substitution effects, budget effects and preference change effects on consumption, yielding a total decrease of 4–6 % in the intake of saturated fat from minced beef and regular cream, and a negligible effect on the intake from sour cream. Conclusions: The Danish introduction of a tax on saturated fat in food in October 2011 had statistically significant effects on the sales of fat in minced beef and cream products, but the tax seems to have reduced the beyond-recommendation saturated fat intake to only a limited extent.",
keywords = "Beef, Cream, Demand response, Fat tax, Price response, Retail sales",
author = "Jensen, {J{\o}rgen Dejg{\aa}rd} and Sinne Smed and Lars Aarup and Erhard Nielsen",
year = "2016",
doi = "10.1017/S1368980015002360",
language = "English",
volume = "19",
pages = "3085--3094",
journal = "Public Health Nutrition",
issn = "1368-9800",
publisher = "Cambridge University Press",
number = "17",

}

RIS

TY - JOUR

T1 - Effects of the Danish saturated fat tax on the demand for meat and dairy products

AU - Jensen, Jørgen Dejgård

AU - Smed, Sinne

AU - Aarup, Lars

AU - Nielsen, Erhard

PY - 2016

Y1 - 2016

N2 - Objective: Taxation of unhealthy food is considered a regulation tool to improve diets. In 2011 Denmark introduced a tax on saturated fat in food products, the first country in the world to do so. The objective of the present paper is to investigate the effects of the tax on consumers’ intake of saturated fat within three different types of food product group: minced beef, regular cream and sour cream. Design: We use an augmented version of the Linearized Almost Ideal Demand System (LAIDS) functional form for econometric analysis, allowing for tax-induced structural breaks. Setting: Data originate from one of the largest retail chains in Denmark (Coop Danmark) and cover January 2010 to October 2012, with monthly records of sales volume, sales revenue and information about specific campaigns from 1293 stores. Results: The Danish fat tax had an insignificant or small negative effect on the price for low- and medium-fat varieties, and led to a 13–16 % price increase for high-fat varieties of minced beef and cream products. The tax induced substitution effects, budget effects and preference change effects on consumption, yielding a total decrease of 4–6 % in the intake of saturated fat from minced beef and regular cream, and a negligible effect on the intake from sour cream. Conclusions: The Danish introduction of a tax on saturated fat in food in October 2011 had statistically significant effects on the sales of fat in minced beef and cream products, but the tax seems to have reduced the beyond-recommendation saturated fat intake to only a limited extent.

AB - Objective: Taxation of unhealthy food is considered a regulation tool to improve diets. In 2011 Denmark introduced a tax on saturated fat in food products, the first country in the world to do so. The objective of the present paper is to investigate the effects of the tax on consumers’ intake of saturated fat within three different types of food product group: minced beef, regular cream and sour cream. Design: We use an augmented version of the Linearized Almost Ideal Demand System (LAIDS) functional form for econometric analysis, allowing for tax-induced structural breaks. Setting: Data originate from one of the largest retail chains in Denmark (Coop Danmark) and cover January 2010 to October 2012, with monthly records of sales volume, sales revenue and information about specific campaigns from 1293 stores. Results: The Danish fat tax had an insignificant or small negative effect on the price for low- and medium-fat varieties, and led to a 13–16 % price increase for high-fat varieties of minced beef and cream products. The tax induced substitution effects, budget effects and preference change effects on consumption, yielding a total decrease of 4–6 % in the intake of saturated fat from minced beef and regular cream, and a negligible effect on the intake from sour cream. Conclusions: The Danish introduction of a tax on saturated fat in food in October 2011 had statistically significant effects on the sales of fat in minced beef and cream products, but the tax seems to have reduced the beyond-recommendation saturated fat intake to only a limited extent.

KW - Beef

KW - Cream

KW - Demand response

KW - Fat tax

KW - Price response

KW - Retail sales

U2 - 10.1017/S1368980015002360

DO - 10.1017/S1368980015002360

M3 - Journal article

C2 - 26306542

AN - SCOPUS:84940092894

VL - 19

SP - 3085

EP - 3094

JO - Public Health Nutrition

JF - Public Health Nutrition

SN - 1368-9800

IS - 17

ER -

ID: 166503195