Price elasticity of demand for ready-to-drink sugar-sweetened beverages in Brazil.
The taxation of sugar-sweetened beverages is a policy that has been adopted in many countries worldwide, including Latin American, to reduce sugar consumption. However, little is known about how taxation on these products may affect their demand. The present study aims to estimate the price elastici...
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| Format: | Article |
| Language: | English |
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Public Library of Science (PLoS)
2023-01-01
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| Series: | PLoS ONE |
| Online Access: | https://journals.plos.org/plosone/article/file?id=10.1371/journal.pone.0293413&type=printable |
| _version_ | 1797635269371887616 |
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| author | Auberth Henrik Venson Larissa Barbosa Cardoso Flaviane Souza Santiago Kênia Barreiro de Souza Renata Moraes Bielemann |
| author_facet | Auberth Henrik Venson Larissa Barbosa Cardoso Flaviane Souza Santiago Kênia Barreiro de Souza Renata Moraes Bielemann |
| author_sort | Auberth Henrik Venson |
| collection | DOAJ |
| description | The taxation of sugar-sweetened beverages is a policy that has been adopted in many countries worldwide, including Latin American, to reduce sugar consumption. However, little is known about how taxation on these products may affect their demand. The present study aims to estimate the price elasticity of demand for sugar-sweetened beverages in Brazil. This study advances the literature by proposing a breakdown between ready-to-drink sugar-sweetened beverages and sugar-sweetened beverages that require some preparation before being consumed. With this disaggregation, it is possible to obtain more accurate elasticities for the group of products that will be effectively taxed. We estimated a Quadratic Almost Ideal Demand System (QUAIDS) model using the Household Budget Survey 2017-2018 microdata. The results show that ready-to-drink beverages is more consumed but less sensitive to changes in price than prepared beverages. The price elasticity of demand for ready-to-drink and prepared sugar-sweetened beverages was -1.19 and -3.38. Additionally, we observe heterogeneity in these price elasticities across household incomes, with a more elastic demand among lower-income households for ready to drink beverages. The findings suggest that taxing ready-to-drink sweetened beverages could potentially reduce sugar consumption directly through a decrease in the consumption of sugary drinks and this effect could be reinforced by reducing the consumption of other sugar-rich products. Therefore, the taxation police should effective contribute to minimize health risks associated to the sugar consumption. |
| first_indexed | 2024-03-11T12:18:51Z |
| format | Article |
| id | doaj.art-7e68d1e6fe604c98a6d15e64a05bc8c1 |
| institution | Directory Open Access Journal |
| issn | 1932-6203 |
| language | English |
| last_indexed | 2024-03-11T12:18:51Z |
| publishDate | 2023-01-01 |
| publisher | Public Library of Science (PLoS) |
| record_format | Article |
| series | PLoS ONE |
| spelling | doaj.art-7e68d1e6fe604c98a6d15e64a05bc8c12023-11-07T05:34:51ZengPublic Library of Science (PLoS)PLoS ONE1932-62032023-01-011811e029341310.1371/journal.pone.0293413Price elasticity of demand for ready-to-drink sugar-sweetened beverages in Brazil.Auberth Henrik VensonLarissa Barbosa CardosoFlaviane Souza SantiagoKênia Barreiro de SouzaRenata Moraes BielemannThe taxation of sugar-sweetened beverages is a policy that has been adopted in many countries worldwide, including Latin American, to reduce sugar consumption. However, little is known about how taxation on these products may affect their demand. The present study aims to estimate the price elasticity of demand for sugar-sweetened beverages in Brazil. This study advances the literature by proposing a breakdown between ready-to-drink sugar-sweetened beverages and sugar-sweetened beverages that require some preparation before being consumed. With this disaggregation, it is possible to obtain more accurate elasticities for the group of products that will be effectively taxed. We estimated a Quadratic Almost Ideal Demand System (QUAIDS) model using the Household Budget Survey 2017-2018 microdata. The results show that ready-to-drink beverages is more consumed but less sensitive to changes in price than prepared beverages. The price elasticity of demand for ready-to-drink and prepared sugar-sweetened beverages was -1.19 and -3.38. Additionally, we observe heterogeneity in these price elasticities across household incomes, with a more elastic demand among lower-income households for ready to drink beverages. The findings suggest that taxing ready-to-drink sweetened beverages could potentially reduce sugar consumption directly through a decrease in the consumption of sugary drinks and this effect could be reinforced by reducing the consumption of other sugar-rich products. Therefore, the taxation police should effective contribute to minimize health risks associated to the sugar consumption.https://journals.plos.org/plosone/article/file?id=10.1371/journal.pone.0293413&type=printable |
| spellingShingle | Auberth Henrik Venson Larissa Barbosa Cardoso Flaviane Souza Santiago Kênia Barreiro de Souza Renata Moraes Bielemann Price elasticity of demand for ready-to-drink sugar-sweetened beverages in Brazil. PLoS ONE |
| title | Price elasticity of demand for ready-to-drink sugar-sweetened beverages in Brazil. |
| title_full | Price elasticity of demand for ready-to-drink sugar-sweetened beverages in Brazil. |
| title_fullStr | Price elasticity of demand for ready-to-drink sugar-sweetened beverages in Brazil. |
| title_full_unstemmed | Price elasticity of demand for ready-to-drink sugar-sweetened beverages in Brazil. |
| title_short | Price elasticity of demand for ready-to-drink sugar-sweetened beverages in Brazil. |
| title_sort | price elasticity of demand for ready to drink sugar sweetened beverages in brazil |
| url | https://journals.plos.org/plosone/article/file?id=10.1371/journal.pone.0293413&type=printable |
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