Abstract
The objective of this article is to estimate the own-price, cross-price and income elasticities of demand for SSB in Ecuador, as an indispensable step for predicting a reduction in the consumption of said beverages caused by the potential implementation of taxes in Ecuador. In addition, the own-price, cross-price and income elasticities of sugar-free substitutes like mineral water and diet soft drinks and juices are also estimated. The data from the 2011–2012 ENIGHUR, which contains detailed information on household consumption and socioeconomic variables, was used. The estimates are done using Deaton’s Almost Ideal Demand System (AIDS) which accounts for differences in the quality of goods purchased. This demand system is estimated for different socio-economic groups, according to total household expenditure. The results reveal own-price elasticities for SSB between –1.17 and –1.33 depending on the socio-economic group, in line with the existing evidence for developed countries. Own-price elasticity for non-SSB is between -1 and -1.24. Income elasticities reveal that both SSB and non-SSB are normal goods with elasticities decreasing for higher socio-economic groups. These results show that the consumption of SSB is sensitive to price changes, meaning that the implementation of taxes on said beverages could be effective in reducing their consumption. The fact that non-SSB are also sensitive to price changes would indicate that subsidies could be implemented for the production of some of them.
Highlights
The scientific evidence of the harmful effects that consuming sugar-sweetened beverages (SSB) has on health has accumulated over time and become increasingly convincing
The review found that SSB consumption was associated with an increase in caloric intake, an increase in body weight, an increase in prevalence of type 2 diabetes, hypocalcaemia, increased bone fractures, dental cavities, hypertension, etc
Households are grouped into Primary Sampling Unit (PSU), statistical units defined from national census information and consisting of about 150 and 90 households in urban and rural households, respectively
Summary
The scientific evidence of the harmful effects that consuming sugar-sweetened beverages (SSB) has on health has accumulated over time and become increasingly convincing. A recent systematic review and meta-analysis examined the relationship between consumption of these beverages and diverse nutritional and health measures [1]. The review found that SSB consumption was associated with an increase in caloric intake (beyond the levels contributed by said beverages), an increase in body weight, an increase in prevalence of type 2 diabetes, hypocalcaemia, increased bone fractures, dental cavities, hypertension, etc. This type of correlations led some authors to think about the significant increase in future health system costs associated with overweightness/obesity, in developed as well as developing countries [2, 3]. PLOS ONE | DOI:10.1371/journal.pone.0152260 March 30, 2016
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