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Corrective taxation and internalities from food consumption

Journal article | CESifo Economic Studies

Corrective taxes have been implemented in a number of countries with the aim of addressing growing concern about the rise in obesity- and diet-related diseases. The rationale is that food consumption imposes costs on the consumer in the future that they do not fully take into account at the point of consumption (‘internalities’). Corrective taxes have the potential to improve welfare by reducing suboptimally high consumption. We review the literature on the size of these internalities and on the optimal corrective tax, which depends on the patterns of internalities, the price responsiveness of consumers, and on redistributive aims.

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Journal article | Review of Economic Studies
There are growing calls to restrict advertising of junk foods. Whether such a move will improve diet quality will depend on how advertising shifts consumer demands and how firms respond. We study an important and typical junk food market – the potato chips market.
Journal article | Journal of the European Economic Association
The rise in obesity has largely been attributed to an increase in calorie consumption. We show that official government household survey data indicate that calories have declined in England between 1980 and 2013; while there has been an increase in calories from food out at restaurants, fast food, ...
Presentation
Presentation given at CREST, Paris.