Price elasticity of the demand for soft drinks, other sugar-sweetened beverages and energy dense food in Chile

Chile is the second world's largest per capita consumer of caloric beverages. Caloric beverages are associated with overweight, obesity and other chronic diseases. The of this study is to estimate the price elasticity of demand for soft drinks, other sugar-sweetened beverages and high-energy de...

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Autor: GUERRERO LOPEZ, CARLOS MANUEL
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:2017
País:México
Institución:Instituto Nacional de Salud Pública
Repositorio:Repositorio Institucional Abierto de Conocimiento en Salud Pública
Idioma:español
OAI Identifier:oai:repositorio.insp.mx:20.500.12096/7863
Acceso en línea:https://bmcpublichealth.biomedcentral.com/track/pdf/10.1186/s12889-017-4098-x
https://www.doi.org/10.1186/s12889-017-4098-x
http://repositorio.insp.mx:8080/jspui/handle/20.500.12096/7863
Access Level:acceso abierto
Palabra clave:EpidemiologyPublic Health,Chile, High energy density foods Price elasticity Soft drinks Sugar sweetened beverages
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spelling Price elasticity of the demand for soft drinks, other sugar-sweetened beverages and energy dense food in ChileGUERRERO LOPEZ, CARLOS MANUELEpidemiologyPublic Health,Chile, High energy density foods Price elasticity Soft drinks Sugar sweetened beveragesinfo:eu-repo/classification/cti/3Chile is the second world's largest per capita consumer of caloric beverages. Caloric beverages are associated with overweight, obesity and other chronic diseases. The of this study is to estimate the price elasticity of demand for soft drinks, other sugar-sweetened beverages and high-energy dense foods in urban areas in Chile in order to evaluate the potential response of households' consumption to changes in prices. METHODS: We used microdata from the VII Family Budget Survey 2012-2013, which collects information on expenditures made by Chilean urban households on items such as beverages and foods. We estimated a Linear Approximation of an Almost Ideal Demand System Model to derive own and cross price elasticities of milk, coffee, tea and other infusions, plain water, soft drinks, other flavored beverages, sweet snacks, sugar and honey, and desserts. We considered the censored nature of the data and included the Inverse Mills Ratio in each equation of the demand system. We estimated a Quadratic Almost Ideal Demand System and a two-part model as sensitivity analysis. RESULTS: We found an own price-elasticity of -1.37 for soft drinks. This implies that a price increase of 10% is associated with a reduction in consumption of 13.7%. We found that the rest of food and beverages included in the demand system behave as substitutes for soft drinks. For instance, plain water showed a cross-price elasticity of 0.63: a 10% increase in price of soft drinks could lead to an increase of 6.3% of plain water. Own and cross price elasticities were similar between models. CONCLUSIONS: The demand of soft drinks is price sensitive among Chilean households. An incentive system such as subsidies to non-sweetened beverages and tax to soft drinks could lead to increases in the substitutions for other healthier beverages.ESPM INSP2022-02-16T04:21:48Z2022-02-16T04:21:48Z2017info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionpdfapplication/pdfsicabi.insp.mx:2017-Nonehttps://bmcpublichealth.biomedcentral.com/track/pdf/10.1186/s12889-017-4098-xhttps://www.doi.org/10.1186/s12889-017-4098-xhttp://repositorio.insp.mx:8080/jspui/handle/20.500.12096/7863reponame:Repositorio Institucional Abierto de Conocimiento en Salud Públicainstname:Instituto Nacional de Salud Públicainstacron:INSPspanacionalinfo:eu-repo/semantics/openAccesshttp://creativecommons.org/licenses/by-nc-nd/4.0oai:repositorio.insp.mx:20.500.12096/78632024-08-27T22:04:30Z
dc.title.none.fl_str_mv Price elasticity of the demand for soft drinks, other sugar-sweetened beverages and energy dense food in Chile
title Price elasticity of the demand for soft drinks, other sugar-sweetened beverages and energy dense food in Chile
spellingShingle Price elasticity of the demand for soft drinks, other sugar-sweetened beverages and energy dense food in Chile
GUERRERO LOPEZ, CARLOS MANUEL
EpidemiologyPublic Health,Chile, High energy density foods Price elasticity Soft drinks Sugar sweetened beverages
info:eu-repo/classification/cti/3
title_short Price elasticity of the demand for soft drinks, other sugar-sweetened beverages and energy dense food in Chile
title_full Price elasticity of the demand for soft drinks, other sugar-sweetened beverages and energy dense food in Chile
title_fullStr Price elasticity of the demand for soft drinks, other sugar-sweetened beverages and energy dense food in Chile
title_full_unstemmed Price elasticity of the demand for soft drinks, other sugar-sweetened beverages and energy dense food in Chile
title_sort Price elasticity of the demand for soft drinks, other sugar-sweetened beverages and energy dense food in Chile
dc.creator.none.fl_str_mv GUERRERO LOPEZ, CARLOS MANUEL
author GUERRERO LOPEZ, CARLOS MANUEL
author_facet GUERRERO LOPEZ, CARLOS MANUEL
author_role author
dc.subject.none.fl_str_mv EpidemiologyPublic Health,Chile, High energy density foods Price elasticity Soft drinks Sugar sweetened beverages
info:eu-repo/classification/cti/3
topic EpidemiologyPublic Health,Chile, High energy density foods Price elasticity Soft drinks Sugar sweetened beverages
info:eu-repo/classification/cti/3
description Chile is the second world's largest per capita consumer of caloric beverages. Caloric beverages are associated with overweight, obesity and other chronic diseases. The of this study is to estimate the price elasticity of demand for soft drinks, other sugar-sweetened beverages and high-energy dense foods in urban areas in Chile in order to evaluate the potential response of households' consumption to changes in prices. METHODS: We used microdata from the VII Family Budget Survey 2012-2013, which collects information on expenditures made by Chilean urban households on items such as beverages and foods. We estimated a Linear Approximation of an Almost Ideal Demand System Model to derive own and cross price elasticities of milk, coffee, tea and other infusions, plain water, soft drinks, other flavored beverages, sweet snacks, sugar and honey, and desserts. We considered the censored nature of the data and included the Inverse Mills Ratio in each equation of the demand system. We estimated a Quadratic Almost Ideal Demand System and a two-part model as sensitivity analysis. RESULTS: We found an own price-elasticity of -1.37 for soft drinks. This implies that a price increase of 10% is associated with a reduction in consumption of 13.7%. We found that the rest of food and beverages included in the demand system behave as substitutes for soft drinks. For instance, plain water showed a cross-price elasticity of 0.63: a 10% increase in price of soft drinks could lead to an increase of 6.3% of plain water. Own and cross price elasticities were similar between models. CONCLUSIONS: The demand of soft drinks is price sensitive among Chilean households. An incentive system such as subsidies to non-sweetened beverages and tax to soft drinks could lead to increases in the substitutions for other healthier beverages.
publishDate 2017
dc.date.none.fl_str_mv 2017
2022-02-16T04:21:48Z
2022-02-16T04:21:48Z
dc.type.none.fl_str_mv info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
format article
status_str publishedVersion
dc.identifier.none.fl_str_mv sicabi.insp.mx:2017-None
https://bmcpublichealth.biomedcentral.com/track/pdf/10.1186/s12889-017-4098-x
https://www.doi.org/10.1186/s12889-017-4098-x
http://repositorio.insp.mx:8080/jspui/handle/20.500.12096/7863
identifier_str_mv sicabi.insp.mx:2017-None
url https://bmcpublichealth.biomedcentral.com/track/pdf/10.1186/s12889-017-4098-x
https://www.doi.org/10.1186/s12889-017-4098-x
http://repositorio.insp.mx:8080/jspui/handle/20.500.12096/7863
dc.language.none.fl_str_mv spa
language spa
dc.rights.none.fl_str_mv info:eu-repo/semantics/openAccess
http://creativecommons.org/licenses/by-nc-nd/4.0
eu_rights_str_mv openAccess
rights_invalid_str_mv http://creativecommons.org/licenses/by-nc-nd/4.0
dc.format.none.fl_str_mv pdf
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dc.coverage.none.fl_str_mv nacional
dc.publisher.none.fl_str_mv ESPM INSP
publisher.none.fl_str_mv ESPM INSP
dc.source.none.fl_str_mv reponame:Repositorio Institucional Abierto de Conocimiento en Salud Pública
instname:Instituto Nacional de Salud Pública
instacron:INSP
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instacron_str INSP
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reponame_str Repositorio Institucional Abierto de Conocimiento en Salud Pública
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