Work

The Impact of Food Prices on Consumption: A Systematic Review of Research on the Price Elasticity of Demand for Food

Year: 2009

Type: review

Abstract: In light of proposals to improve diets by shifting food prices, it is important to understand how price changes affect demand for various foods. We reviewed 160 studies on the price elasticity of demand for major food categories to assess mean elasticities by food category and variations in estimates by study design. Price elasticities for foods and nonalcoholic beverages ranged from 0.27 to 0.81 (absolute values), with food away from home, soft drinks, juice, and meats being most responsive to price changes (0.7-0.8). As an example, a 10% increase in soft drink prices should reduce consumption by 8% to 10%. Studies estimating price effects on substitutions from unhealthy to healthy food and price responsiveness among at-risk populations are particularly needed.

Source: American Journal of Public Health

DOI: 10.2105/ajph.2008.151415

Authors: Tatiana Andreyeva, Michael W. Long, Kelly D. Brownell

Institution: Yale University

Language: English

Topic: Economics of Agriculture and Food Markets

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Good health and well-being, Zero hunger

Open Access status: green

Funder: Rudd Foundation