The productivity gains associated with a junk food tax and their impact on cost-effectiveness

Hannah E. Carter; Deborah J. Schofield; Rupendra Shrestha; Lennert Veerman

doi:10.1371/journal.pone.0220209

The productivity gains associated with a junk food tax and their impact on cost-effectiveness

Hannah E. Carter^*, Deborah J. Schofield, Rupendra Shrestha, Lennert Veerman

^*Corresponding author for this work

Research output: Contribution to journal › Article › peer-review

7 Citations (Scopus)

48 Downloads (Pure)

Abstract

Objective: To estimate the productivity impacts of a policy intervention on the prevention of premature mortality due to obesity.

Methods: A simulation model of the Australian population over the period from 2003 to 2030 was developed to estimate productivity gains associated with premature deaths averted due to an obesity prevention intervention that applied a 10% tax on unhealthy foods. Outcome measures were the total working years gained, and the present value of lifetime income (PVLI) gained. Impacts were modelled over the period from 2003 to 2030. Costs are reported in 2018 Australian dollars and a 3% discount rate was applied to all future benefits.

Results: Premature deaths averted due to a junk food tax accounted for over 8,000 additional working years and a $307 million increase in PVLI. Deaths averted in men between the ages of 40 to 59, and deaths averted from ischaemic heart disease, were responsible for the largest gains.

Conclusions: The productivity gains associated with a junk food tax are substantial, accounting for almost twice the value of the estimated savings to the health care system. The results we have presented provide evidence that the adoption of a societal perspective, when compared to a health sector perspective, provides a more comprehensive estimate of the cost-effectiveness of a junk food tax.

Original language	English
Article number	e0220209
Pages (from-to)	1-11
Number of pages	11
Journal	PLoS ONE
Volume	14
Issue number	7
DOIs	https://doi.org/10.1371/journal.pone.0220209
Publication status	Published - 22 Jul 2019

Bibliographical note

Version archived for private and non-commercial use with the permission of the author/s and according to publisher conditions. For further rights please contact the publisher.

Access to Document

10.1371/journal.pone.0220209Licence: CC BY

Publisher version (open access)Final published version, 812 KBLicence: CC BY

Cite this

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title = "The productivity gains associated with a junk food tax and their impact on cost-effectiveness",

abstract = "Objective: To estimate the productivity impacts of a policy intervention on the prevention of premature mortality due to obesity.Methods: A simulation model of the Australian population over the period from 2003 to 2030 was developed to estimate productivity gains associated with premature deaths averted due to an obesity prevention intervention that applied a 10% tax on unhealthy foods. Outcome measures were the total working years gained, and the present value of lifetime income (PVLI) gained. Impacts were modelled over the period from 2003 to 2030. Costs are reported in 2018 Australian dollars and a 3% discount rate was applied to all future benefits.Results: Premature deaths averted due to a junk food tax accounted for over 8,000 additional working years and a $307 million increase in PVLI. Deaths averted in men between the ages of 40 to 59, and deaths averted from ischaemic heart disease, were responsible for the largest gains.Conclusions: The productivity gains associated with a junk food tax are substantial, accounting for almost twice the value of the estimated savings to the health care system. The results we have presented provide evidence that the adoption of a societal perspective, when compared to a health sector perspective, provides a more comprehensive estimate of the cost-effectiveness of a junk food tax.",

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AU - Veerman, Lennert

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N2 - Objective: To estimate the productivity impacts of a policy intervention on the prevention of premature mortality due to obesity.Methods: A simulation model of the Australian population over the period from 2003 to 2030 was developed to estimate productivity gains associated with premature deaths averted due to an obesity prevention intervention that applied a 10% tax on unhealthy foods. Outcome measures were the total working years gained, and the present value of lifetime income (PVLI) gained. Impacts were modelled over the period from 2003 to 2030. Costs are reported in 2018 Australian dollars and a 3% discount rate was applied to all future benefits.Results: Premature deaths averted due to a junk food tax accounted for over 8,000 additional working years and a $307 million increase in PVLI. Deaths averted in men between the ages of 40 to 59, and deaths averted from ischaemic heart disease, were responsible for the largest gains.Conclusions: The productivity gains associated with a junk food tax are substantial, accounting for almost twice the value of the estimated savings to the health care system. The results we have presented provide evidence that the adoption of a societal perspective, when compared to a health sector perspective, provides a more comprehensive estimate of the cost-effectiveness of a junk food tax.

AB - Objective: To estimate the productivity impacts of a policy intervention on the prevention of premature mortality due to obesity.Methods: A simulation model of the Australian population over the period from 2003 to 2030 was developed to estimate productivity gains associated with premature deaths averted due to an obesity prevention intervention that applied a 10% tax on unhealthy foods. Outcome measures were the total working years gained, and the present value of lifetime income (PVLI) gained. Impacts were modelled over the period from 2003 to 2030. Costs are reported in 2018 Australian dollars and a 3% discount rate was applied to all future benefits.Results: Premature deaths averted due to a junk food tax accounted for over 8,000 additional working years and a $307 million increase in PVLI. Deaths averted in men between the ages of 40 to 59, and deaths averted from ischaemic heart disease, were responsible for the largest gains.Conclusions: The productivity gains associated with a junk food tax are substantial, accounting for almost twice the value of the estimated savings to the health care system. The results we have presented provide evidence that the adoption of a societal perspective, when compared to a health sector perspective, provides a more comprehensive estimate of the cost-effectiveness of a junk food tax.

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The productivity gains associated with a junk food tax and their impact on cost-effectiveness

Abstract

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Long term economic impacts of disease on older workers to 2030: Costs to government and individuals and opportunities for intervention. [Funded by ARC Linkage Grant & Pfizer; Total Awarded: $834,700 LP100100158 ]

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The productivity gains associated with a junk food tax and their impact on cost-effectiveness

Abstract

Bibliographical note

Access to Document

Other files and links

Fingerprint

Projects

Long term economic impacts of disease on older workers to 2030: Costs to government and individuals and opportunities for intervention. [Funded by ARC Linkage Grant & Pfizer; Total Awarded: $834,700 LP100100158 ]

Cite this