Table 1.
Evidence on Price Effects on Consumption
| Author | Price/Tax Variable [Source] | Data Set | Population (Sample size) | Model | Outcome Variable | Price Effect: Direction/ElasticityA |
|---|---|---|---|---|---|---|
|
Panel A: Evidence for Sugar Sweetened Beverages and Soft Drinks
| ||||||
| Brown (2008)32 | Price ($/gallon) [Nielsen Retailer Scanner Data] | Nielsen Retail Scanner Data, 2003–06 | National sample of retailers (n=NRB) | Rotterdam model (two specifications) | Juice drink sales (per capita gallons) | −1.715, −1.527 |
| CSDC sales (per capita gallons) | −1.756, −1.956 | |||||
|
| ||||||
| Zheng and Kaiser (2008a)33 | Price ($/gallon) [CPID Detailed Report from BLSE] | Food Availability (Per Capita) Data System from ERSF, 1974–2005 | Aggregated US national sample (n=NR) | AIDSG, Rotterdam Model | CSD consumption per capita (gallons /person) | −0.521, −0.306 |
|
| ||||||
| Zheng and Kaiser (2008b)34 | Price ($/gallon) [CPI Detailed Report from BLS] | Food Availability (Per Capita) Data System from ERS, 1974–2005 | Aggregated US national sample (n=NR) | AIDS | CSD consumption per capita (gallons /person) | −0.609 |
|
| ||||||
| Duffey, Gordon-Larsen, Shikany, Guilkey, Jacobs, and Popkin (2010)29 | Price ($) [C2ER\ACCRAH] | CARDIAI, 1985–86, 1992–93, 2005–06 | Adults aged 18–30 in baseline year (n=5115) | Cross-sectional | RCSDJ consumption probability | −0.30 |
| RCSD consumption (kcal/day) | −0.712 | |||||
|
| ||||||
| Finkelstein, Zhen, Nonnemaker and Todd (2010)27 | Price ($)[Nielsen Homescan Data] | Nielsen Homescan Data, 2006 | National sample of households (n=NR) | Demand System | Carbonated SSB1K purchases | −0.73 |
| All SSB2L purchases | −0.87 | |||||
|
| ||||||
| Fletcher, Frisvold and Teft (2010)51 | State-level soft drink tax [LexisNexis Academic, States’ Departments of Revenue] | NHANESM, 1988–1994, 1999–2006 | Children 3–18 years old (n=20,968) | Cross-sectional | SSB3N consumption (kcal) | - |
|
| ||||||
| Fletcher, Frisvold and Tefft (2010)50 | State-level soft drink tax [LexisNexis Academic, States’ Departments of Revenue] | NHANES, 1989–1994, 1999–2006 | Children aged 3–18 (n=21,040) | Cross-sectional | SSB3 consumption probability | - |
| SSB3 consumption (grams) | - | |||||
| SSB3 consumption (kcal) | - | |||||
|
| ||||||
| Smith, Lin and Lee (2010)28 | Price ($/gallon) [Nielsen Homescan Data] | Nielsen Homescan Data, 1998–2007 | National sample of households (n=NR) | AIDS | SSB2 purchases (oz/day) | −1.264 |
|
| ||||||
| Sturm, Powell, Chriqui, and Chaloupka (2010)52 | State-level carbonated soda sales tax [BTGO] | ECLS-KP, 2004 | 5th grade children (n=7300) | Cross-sectional | SSB2 consumption (times/week) | All Students: Tax amt/ind: −/− Tax amt/ ind: −/− |
| SSB2 purchases in- school (times/week) | Available in school: Tax amt/ind: −/− Tax amt/ind: −/− |
|||||
|
| ||||||
| Zheng, Kinnucan and Kaiser (2010)35 | Price ($/gallon) [CPI Detailed Report from BLS] | USDAQ Food Disappearance Data, 1970–2004 | Aggregated US national sample (n=NR) | Linear, Semi-log, Rotterdam and AIDS model | CSD consumption per capita (gallons /person) | −0.604, −0.366, −0.428, −0.772 |
|
| ||||||
| Dharmasena and Capps (2011)30 | Price ($/gallon) [Nielsen Homescan Data] | Nielsen Homescan Data, 1998–2003 | National sample of households (n=NR) | AIDS | RCSD purchases (per capita gals/month) | −2.2552 |
| Sports/energy purchases (per capita gals/month) | −3.8650 | |||||
| Fruit drink purchases (per capita gals/month) | −0.6892 | |||||
|
| ||||||
| Lin, Smith, Lee and Hall (2011)26 | Price ($/gallon) [Nielsen Homescan Data] | Nielson National Consumer Panel R, 1998–2007 | National sample of households (n=NR) | AIDS | SSB2 purchases (grams/day) | Low income: −0.949 High income: −1.292 |
| SSB2 (calories/day) | ||||||
|
| ||||||
| Sturm and Datar (2011)39 | Prices ($) [C2ER\ACCRA] | ECLS-K, 2004 | 5th grade children (n=4896) | Cross-sectional | SSB2 consumption (times/week) | + |
|
| ||||||
| Zhen, Wohlgenant, Karns and Kaufman (2011)31 | Price ($/gallon) [Nielsen Homescan Data] | Nielsen Homescan Data, 2004–06 | National sample of households (n=NR) | AIDS | RCSD purchases (oz/month) | −1.06 to −1.54 |
| Sports/energy beverage purchases (oz/month) | −0.53 to −1.52 | |||||
| Fruit drink purchases (oz/month) | −1.44 to −2.65 | |||||
|
| ||||||
|
Panel B: Evidence for Fast Food (FF)
| ||||||
| Beydoun, Powell, and Wang (2008)37 | Prices ($)[C2ER\ACCRA] | CSFIIS, 1994–96 | Adults aged 20–65 (n=7331) | Cross-sectional | FFT consumption (items/24hours) | − |
|
| ||||||
| Duffey, Gordon-Larsen, Shikany, Guilkey, Jacobs, and Popkin (2010)29 | Price ($) [C2ER\ACCRA] | CARDIA, 1985–86, 1992–93, 2005–06 | Adults aged 18–30 in baseline year (n=5115) | Cross-sectional | FF consumption probability | Pizza: −0.70; Burger: 0 |
| FF consumption (change kcal) | Pizza:−1.150; Burger: + 0.203 Pizza &Burger: − |
|||||
|
| ||||||
| Gordon-Larsen, Guilkey and Popkin (2011)40 | Price ($) [C2ER\ACCRA] | Add HealthU,, 1996 and 2001–02 | 7th–12th grade children in wave I and adults aged 18–28 in wave II (n=11,088) | Longitudinal | FF consumption (days/week) | − |
|
| ||||||
| Beydoun, Powell, Chen and Wang (2011)38 | Price ($)[C2ER\ACCRA] | CSFII, 1994–98 | Children aged 2–9 (n=6,759) | Cross-sectional | FF consumption (items/24hours) | Children: − |
| Adolescents aged 10–18 (n=1679) | Low-income children: − Adolescents: − |
|||||
|
| ||||||
| Sturm and Datar (2011)39 | Price ($) [C2ER\ACCRA] | ECLS-K, 2004 | 5th grade children (n=4896) | Cross-sectional | FF consumption (times/week) | + |
|
| ||||||
| Khan, Powell and Wada (2012)36 | Price ($) [C2ER\ACCRA] | ECLS-K, 2004, 2007 | 5th and 8th grade children (n=11,700) | Longitudinal | FF consumption (times/week) | − 0.565 |
|
| ||||||
|
Panel C: Evidence for Fruits and Vegetables (FV)
| ||||||
| Powell, Auld, Chaloupka, O’Malley and Johnston (2007) 41 | Price ($)[C2ER\ACCRA] | MTFV, 1997–2003 | 8th and 10th grade adolescents (n=47,675) | Cross-sectional | FVW consumption (prevalence of frequent consumption) | −0.08 |
|
| ||||||
| Beydoun, Powell, and Wang (2008)37 | Prices ($) [C2ER\ACCRA] | CSFII, 1994–96 | Adults aged 20–65 (n=7331) | Cross-sectional | FV consumption (grams/day) | + |
|
| ||||||
| Dong and Lin (2009)43 | Price ($)[Nielsen Homescan Data] | Nielsen Homescan Data, 2004 | National sample of households (n=NR) | Demand System | FV purchases (cups/day) | Fruit: −0.52 low income; −0.58 high income |
| Vegetable: −0.69 low income; −0.57 high income | ||||||
|
| ||||||
| Powell, Zhao and Wang (2009)44 | Price ($) [C2ER\ACCRA] | NLSY97X, 2002 | Young Adults aged 18–23 (n=3739) | Cross-sectional | FV consumption (times/week) | − 0.32 |
|
| ||||||
| Lin, Yen, Dong and Smallwood (2010)42 | Price ($/lb) [National Food Stamp Program Survey] | National Food Stamp Program Survey, 1996–97 | Households using food stamps (n=900) | Translog Demand System | FV purchases ($/week) | Vegetable:−0.717 Fruit: −0.813 |
|
| ||||||
| Sturm and Datar (2011)39 | Price ($) [C2ER\ACCRA] | ECLS-K, 2004 | 5th grade children (n=4896) | Cross-sectional | FV consumption (times/week) | − 0.26 |
|
| ||||||
| Beydoun, Powell, Chen and Wang (2011)38 | Price ($) [C2ER\ACCRA] | CSFII, 1994–98 | Children aged 2–9 (n=6,759) | Cross-sectional | FV consumption (grams/day) | Children: + Adolescents: + |
| Adolescents aged 10–18 (n=1679) | ||||||
A
All directions and elasticity are statistically significant when in bold. Elasticity measures provided when available. Results for selected sub samples noted.
B
NR: Not reported
C
CSD: Regular and diet carbonated soft drinks
D
CPI: Consumer price index
E
BLS: Bureau of Labor Statistics
F
ERS: Economic Research Service
G
AIDS: Almost Ideal Demand System
H
C2ER\ACCRA: Council for Community and Economic Research formerly American Chamber of Commerce Researchers Association
I
CARDIA: Coronary Artery Risk Development in Young Adults
J
RCSD: Regular carbonated soft drinks
K
SSB1: Regular carbonated soft drinks
L
SSB2: Regular carbonated soft drinks, sports/energy drinks, and fruit drinks
M
NHIS: National Health and Nutrition Examination Survey
N
SSB3: Non-alcoholic beverages with added natural or artificial sweeteners (carbonated & non-carbonated)
O
BTG: Bridging the Gap- Robert Johnson Foundation-supported project, Health Policy Center, University of Illinois at Chicago
P
ECLS-K: Early Childhood Longitudinal Study- Kindergarten cohort 1998
Q
USDA: United States Department of Agriculture
R
Also formerly known as Nielsen Homescan Data
S
CSFII: Continuing Survey of Food Intakes by Individuals
T
FF: Fast Food
U
Add Health: National Longitudinal Study of Adolescent Health
V
MTF: Monitoring the Future Survey
W
FV: Fruits and Vegetables
X
NLSY97: National Longitudinal Study of Youth 1997