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Session: Issues in Obesity
Room: Meeting Room 21
Time: Fri 11:45-13:00

Presenter: Arnstein Øvrum (Norwegian Agricultural Economics Research Institute and Norwegian University of Life Sciences. )

Abstract

Rationale and Objective: Increasing prevalence of obesity and type II diabetes represents a major health challenge in most developed countries. Most of the underlying lifestyle choices that cause these health outcomes are closely related to socioeconomic status (SES). One policy instrument that could help people make healthier choices is public information campaigns. While such campaigns are likely to have positive – although perhaps small – effects on overall population health, little is known about the relative effects of such information across different SES groups, and consequently, about whether such campaigns are likely to increase or reduce SES inequalities in health. Therefore, this paper uses data from a choice experiment to study effects of health information on preferences for healthy attributes in "everyday-use" hard cheese, focusing on the extent to which information effects vary across different SES groups.

Methods: The choice experiment on cheese was part of a web-survey that was carried out in April 2009 (n=215 respondents). The cheeses differed with respect to price, fat content, organic production, and fodder/fat composition (lower saturated/unsaturated fat-ratio as a result of new fodder calibration). Each attribute had two levels, and the full factorial design of 16 cheeses was used to create a D-optimal design of 8 choice sets x 2 cheeses. Half of the respondents were given neutral information about the different cheese attributes prior to the choice experiment. The other half were given the same information plus an additional paragraph about (i) the fat content in regular cheese (about 27 % fat, of which more than 50 % is saturated fat), (ii) the potential links between saturated fat intake and chronic disease, and (iii) official recommendations about reducing overall fat intake, and in particular saturated fat. Various econometric models have been estimated to assess the effect of this additional information on preferences for healthy cheese attributes, and the extent to which this effect varies across different SES groups.

Results: Although results vary somewhat across different econometric specifications, one common pattern stands out; without additional health information, marginal willingness to pay (MWTP) for low-fat cheese and cheese with less saturated fat is highest among college-educated individuals. However, the effect of additional health information on additional MWTP for healthy cheese attributes is strongest among individuals with no college education. For example, in the standard logit model, the mean MWTPs for low-fat cheese without and with additional health information for college-educated individuals are 0.88 EUR/kg and 0.91 EUR/kg, respectively, while corresponding estimates for those with no college education are 0.26 EUR/kg (p-value>0.05) and 1.36 EUR/kg. Results are more mixed when income is being used as SES indicator.

Conclusions: The results of this study indicates that for food products for which choices among healthy and less healthy varieties are being made unconsciously or with limited knowledge about potential health consequences of making ‘wrong’ choices over time, providing additional health information leads to healthier choices. Furthermore, since information effects seem to be strongest in low-educated groups, such information may help reduce education-related inequalities in health.

Key Terms

socioeconomic inequality, choice experiments, information effects

Authors:

Arnstein Øvrum , Frode Alfnes (Norwegian University of Life Sciences) and Kyrre Rickertsen (Norwegian Agricultural Economics Research Institute and Norwegian University of Life Sciences)

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