How will the reduction of tariffs and taxes on insecticide- treated bednets affect household purchases?
One of the steps called for in the fight against malaria is the removal of tariffs and taxes on insecticide-treated bednets (ITNs), netting materials, and insecticides, with a view to reducing the retail prices of ITNs and thus increasing utilization. In this paper we develop an approach for analysi...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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The World Health Organization
2002-01-01
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| Series: | Bulletin of the World Health Organization |
| Subjects: | |
| Online Access: | http://www.scielosp.org/scielo.php?script=sci_arttext&pid=S0042-96862002001100010 |
| _version_ | 1797288713043050496 |
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| author | Simon Jonathon L. Larson Bruce A. Zusman Alexander Rosen Sydney |
| author_facet | Simon Jonathon L. Larson Bruce A. Zusman Alexander Rosen Sydney |
| author_sort | Simon Jonathon L. |
| collection | DOAJ |
| description | One of the steps called for in the fight against malaria is the removal of tariffs and taxes on insecticide-treated bednets (ITNs), netting materials, and insecticides, with a view to reducing the retail prices of ITNs and thus increasing utilization. In this paper we develop an approach for analysing the extent to which reform of tariff and tax policy can be expected to increase ITN purchases. We consider the following questions: (1) How much does the retail price of ITNs change if tariffs and taxes are reduced or eliminated? (2) How responsive is consumer demand to changes in the retail price of ITNs? Data on the price elasticity of demand for ITNs are very limited. Nevertheless, they suggest that ITN demand is not highly responsive to lower prices if household preferences are held constant. The reduction in retail prices associated with the removal of tariffs and taxes depends on the structure of the market in individual countries. In Nigeria, reducing the tariff on insecticides from 42% to zero and the tariff on netting materials from 40% to 5% is expected to increase ITN purchases by 9-27%, depending on the elasticity used. Country-specific information about market structure and cost conditions is needed if predictions are to be made as to how a specific policy change will affect ITN purchases. |
| first_indexed | 2024-03-07T18:53:29Z |
| format | Article |
| id | doaj.art-97718bd32efa481184a5ff7f7d790e5e |
| institution | Directory Open Access Journal |
| issn | 0042-9686 |
| language | English |
| last_indexed | 2024-03-07T18:53:29Z |
| publishDate | 2002-01-01 |
| publisher | The World Health Organization |
| record_format | Article |
| series | Bulletin of the World Health Organization |
| spelling | doaj.art-97718bd32efa481184a5ff7f7d790e5e2024-03-02T01:01:40ZengThe World Health OrganizationBulletin of the World Health Organization0042-96862002-01-018011892899How will the reduction of tariffs and taxes on insecticide- treated bednets affect household purchases?Simon Jonathon L.Larson Bruce A.Zusman AlexanderRosen SydneyOne of the steps called for in the fight against malaria is the removal of tariffs and taxes on insecticide-treated bednets (ITNs), netting materials, and insecticides, with a view to reducing the retail prices of ITNs and thus increasing utilization. In this paper we develop an approach for analysing the extent to which reform of tariff and tax policy can be expected to increase ITN purchases. We consider the following questions: (1) How much does the retail price of ITNs change if tariffs and taxes are reduced or eliminated? (2) How responsive is consumer demand to changes in the retail price of ITNs? Data on the price elasticity of demand for ITNs are very limited. Nevertheless, they suggest that ITN demand is not highly responsive to lower prices if household preferences are held constant. The reduction in retail prices associated with the removal of tariffs and taxes depends on the structure of the market in individual countries. In Nigeria, reducing the tariff on insecticides from 42% to zero and the tariff on netting materials from 40% to 5% is expected to increase ITN purchases by 9-27%, depending on the elasticity used. Country-specific information about market structure and cost conditions is needed if predictions are to be made as to how a specific policy change will affect ITN purchases.http://www.scielosp.org/scielo.php?script=sci_arttext&pid=S0042-96862002001100010Bedding and linens/economicsInsecticides/therapeutic useInsecticides/economicsTaxesPublic policyMalaria/prevention and controlHouseholdsCausalityModelsEconomicAfricaNigeria |
| spellingShingle | Simon Jonathon L. Larson Bruce A. Zusman Alexander Rosen Sydney How will the reduction of tariffs and taxes on insecticide- treated bednets affect household purchases? Bulletin of the World Health Organization Bedding and linens/economics Insecticides/therapeutic use Insecticides/economics Taxes Public policy Malaria/prevention and control Households Causality Models Economic Africa Nigeria |
| title | How will the reduction of tariffs and taxes on insecticide- treated bednets affect household purchases? |
| title_full | How will the reduction of tariffs and taxes on insecticide- treated bednets affect household purchases? |
| title_fullStr | How will the reduction of tariffs and taxes on insecticide- treated bednets affect household purchases? |
| title_full_unstemmed | How will the reduction of tariffs and taxes on insecticide- treated bednets affect household purchases? |
| title_short | How will the reduction of tariffs and taxes on insecticide- treated bednets affect household purchases? |
| title_sort | how will the reduction of tariffs and taxes on insecticide treated bednets affect household purchases |
| topic | Bedding and linens/economics Insecticides/therapeutic use Insecticides/economics Taxes Public policy Malaria/prevention and control Households Causality Models Economic Africa Nigeria |
| url | http://www.scielosp.org/scielo.php?script=sci_arttext&pid=S0042-96862002001100010 |
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