Food Policy, Economics and Obesity Prevention

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Food Policy, Economics and Obesity Prevention Lisa M. Powell, Ph.D. Institute for Health Policy and Research University of Illinois at Chicago National Cancer Institute Eighth Annual Cancer Prevention Fellows Scientific Symposium Bethesda, MD September 16, 2009

Background: Health The health risks associated with obesity are numerous and include: premature death, type 2 diabetes, heart disease, stroke, hypertension, gallbladder disease, osteoarthritis, sleep apnea, asthma, breathing problems, cancer, high blood cholesterol, complications of pregnancy, menstrual irregularities, hirsutism, stress, incontinence, and depression

Background: Obesity Rates Children (2-19): 16.3% Adults (20+): 32.2% Girls Boys Women Men 15.5% 17.1% 33.2% 31.1% White African American White African American White African American White African American 13.6% 24.1% 15.6% 17.4% 30.2% 53.9% 31.1% 34.0% Source: Ogden et al. (2006, 2008) JAMA -- The National Health and Nutrition Examination Survey 2003-06.

Bridging the Gap - Obesity State level policies addressing the built environment State level policies and legislation around Safe Routes to School State taxation of beverages, snack foods, and restaurant food Availability and accessibility of physical activity opportunities Comprehensiveness of school district wellness policies Information on healthy eating and physical activity opportunities from key informant interviews State and National Annual collection of state policies and commercial data (UIC) Local and Community Planned annual community data collection and ongoing district wellness policy collection and coding (UIC) Presence and content of vending machines at school Frequency and length of physical education and recess School and Organizational Individual and Household Annual MTF surveys (ISR-UM) Commercial data (UIC) Availability and accessibility of healthy food and beverages in stores and restaurants Annual YES (ISR-UM) and Food & Fitness surveys (UIC) Self-reported height and weight, physical activity, and measures of healthy eating Household food expenditures Implementation of school district wellness policies Marketing of food/beverages at school Awareness and implementation of Alliance for a Healthier Generation Guidelines Availability of various foods/beverages in the school environment Characteristics of the built environment that impact on physical activity National food and beverage television advertising Local zoning codes, regulations, and ordinances that can impact on healthy eating and physical activity Marketing of healthy/unhealthy foods and beverages in communities State policies related to healthy eating and physical activity Market-level PSAs related to healthy eating, physical activity, and obesity State policies related to school district wellness policies

Economic Models Idea is that the policy instrument changes relative costs or benefits which, in turn, affect behavior choices related to diet and activity. Equity considerations: i.e., food taxes - who benefits versus who bears the costs. Health benefits progressive Tax burden regressive Subsidies progressive

Food Accessibility, Availability, and Affordability Access: Total Cost based on Availability and Affordability Availability: Number of available food-related outlets within a measured geographic area assessed on a per capita and/or per land area basis. Healthy foods associated with grocery store and supermarket availability. Less healthy foods associated with convenience store and fast food restaurant availability. Affordability: Monetary cost food prices. Affordability of healthy foods proxied by fruit and vegetable prices. Affordability of less healthy foods proxied by fast food and soda prices.

Evidence Some examples relevant for the following food-related policy instruments: Taxes Subsidies Advertising Regulations Zoning Urban Planning

Real ($2007) Price Fruit and Vegetable Price Index, 1990-2007 3.00 2.50 2.00 1.50 1.00 0.50 0.00 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Year Source: Powell, Lisa M., ImpacTeen Project, University of Illinois. Data drawn from ACCRA, 1990-2007. Note: Fruit and Vegetable Price Index includes: potatoes, bananas, iceberg tomatoes, sweet peas & peaches.

Real ($2007) Price Dairy Prices and Meat Price Index, 1990-2007 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 Year Source: Powell, Lisa M., ImpacTeen Project, University of Illinois. Data drawn from ACCRA, 1990-2007. Note: Meat Price Index includes: T-bone steak, ground beef, sausage, frying chicken, and chunk light tuna. 2000 2001 2002 2003 2004 2005 2006 2007 Meat Index Whole Milk Eggs

Real ($2007) Price 3.00 Soft Drink Price Index, 1990-2007 2.50 2.00 1.50 1.00 0.50 0.00 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Year Source: Powell, Lisa M., ImpacTeen Project, University of Illinois. Data drawn from ACCRA, 1990-2007.

Real ($2007) Price Fast Food Price Index, 1990-2007 7.50 7.00 6.50 6.00 5.50 5.00 1990 1991 1992 1993 1994 4.50 1995 1996 1997 1998 1999 Year 2000 2001 2002 2003 2004 2005 2006 2007 Source: Powell, Lisa M., ImpacTeen Project, University of Illinois. Data drawn from ACCRA, 1990-2007. Note: Fast Food Price Index includes: hamburger 1/4-pound with cheese, 11-12 thin crust cheese pizza, and fried chicken-thigh and drumstick.

Zip Codes Without Grocery Stores or Supermarkets and Without Chain Supermarkets Source: Powell, Lisa M. ImpacTeen Project- University of Illinois. Data drawn from Dun and Bradstreet, 2008.

Urban Zip Codes Without Grocery Stores or Supermarkets and Without Chain Supermarkets Source: Powell, Lisa M. ImpacTeen Project, University of Illinois. Data drawn from Dun and Bradstreet, 2008.

Grocery store and Supermarket Availability by Zip Code per 10,000 Capita Source: Powell, Lisa M. ImpacTeen Project, University of Illinois. Data drawn from Dun and Bradstreet, 2008.

Grocer Store and Supermarket Availability by Zip Code per 10,000 Capita per 10 Square Miles Source: Powell, Lisa M., ImpacTeen Project- University of Illinois. Data drawn from Dun and Bradstreet, 2008.

Food Store and Restaurant Availability by Demographics and Socio-economic Status Business List Data Dun & Bradstreet year 2000 data on food stores (grocery stores, chain supermarkets, non-chain supermarkets and convenience stores). Linked across 28,050 zip codes to: Census 2000 Data Census data on population characteristics race, ethnicity, income, population, and urbanicity

Incidence Rate Ratios Availability of Food Store Outlets, by Race 2.0 1.8 1.6 1.4 1.49 1.69 1.2 1.0 1 1 1 1 1.01 0.8 0.6 0.52 0.4 0.2 0.0 Chain Supermarkets Non-chain Supermarkets Grocery Stores Convenience Stores White African American Source: Powell et al., Preventive Medicine, 2007.

Incidence Rate Ratios Availability of Food Store Outlets, by Ethnicity 2.0 1.8 1.6 1.4 1.39 1.2 1.0 0.8 0.6 1 1 0.88 1 1 0.68 0.4 0.32 0.2 0.0 Chain Supermarkets Non-chain Supermarkets Grocery Stores Convenience Stores Non-Hispanic Hispanic Source: Powell et al., Preventive Medicine, 2007.

Incidence Rate Ratios Availability of Food Store Outlets, by Income 2.0 1.8 1.6 1.4 1.2 1.0 0.8 0.6 0.75 1 0.84 1.1 1 0.79 1.18 1 0.73 0.96 1 0.62 0.4 0.2 0.0 Chain Supermarkets Non-chain Supermarkets Grocery Stores Convenience Stores Low-income Middle-income High-income Source: Powell et al., Preventive Medicine, 2007.

Incidence Rate Ratios Availability of Fast Food Restaurants, by Race 1.0 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0.0 1 0.593 Fast-food Restaurants White African American Source: Powell et al., American Journal of Preventive Medicine, 2007

Incidence Rate Ratios Availability of Fast Food Restaurants, by Ethnicity 1.0 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0.0 1 0.558 Fast-food Restaurants Hispanic Non-Hispanic Source: Powell et al., American Journal of Preventive Medicine, 2007

Incidence Rate Ratios Availability of Fast Food Restaurants, by Income 1.6 1.4 1.2 1.0 1.235 1.336 1.278 1.194 1 0.8 0.6 0.4 0.2 0.0 Fast-food Restaurants Low Near low Middle Near high High Source: Powell et al., American Journal of Preventive Medicine, 2007

Summary of Food Environment and Community Characteristics Fewer large chain supermarkets in lower income communities and substantially fewer in predominantly African American and Hispanic communities. Smaller groceries, independent supermarkets more available in minority communities. Find greater availability of fast food restaurants in low-to middle income neighborhoods. Fewer restaurants of all types in predominantly minority communities. Of restaurants available, significantly higher proportion of fast food restaurants in African American communities.

Community Food Environment and Child/Youth Weight Outcomes: Data Linkage Individual-level data examples Monitoring the Future Data Child Development Supplement of the PSID Children of the National Longitudinal Survey of Youth 79 Linked by geocodes to: Food prices from ACCRA Fruit and vegetable price index Fast food price index Outlet density data from D&B Fast Food and Full-service Restaurants Supermarkets, Grocery and Convenience Stores Census Data

Evidence from MTF: Community Food Environment and Youth Fruit and Vegetable Consumption and BMI Find that: Youth in communities with lower fruit and vegetable prices have more frequent fruit & vegetable consumption and lower BMI Youth in communities with lower fast food prices have less frequent fruit & vegetable consumption, higher BMI, and are more likely to be overweight 10 percent rise in fast food prices would increase probability of frequent F&V consumption by 3%, reduce BMI by 0.4% and lower probability of being overweight by 5.9% Source: Powell, et al., Advances in Health Economics and Health Services Research, 2007

Evidence from MTF: Community Food Environment and Youth BMI Find that: Impact of both fast food and fruit & vegetable prices greatest among youth in top of BMI distribution (most at risk group) Above 90 th percentile, fast food price impact 4 times larger than average effect for full sample Above 95 th percentile, fruit & vegetable price impact 5 times larger than average effect Little impact of prices at low/mid-ranges of BMI Supermarket availability inversely associated with BMI at all levels, with greater impact on upper end Source: Auld and Powell, Economica, in press

Evidence from MTF: Community Food Environment and Youth Physical Activity Find that: Increased availability of commercial physical activity-related facilities is associated with a small increase in vigorous exercise An additional facility per 10,000 capita associated with a 0.22 percentage point increase in frequent vigorous excercise. Effects greatest among female and older youths. Source: Powell et al., American Journal of Preventive Medicine, 2007

Evidence from CDS-PSID: Contextual Factors on Child BMI Percentile by Family Income Dependent Variable: BMI Percentile Low Income Families (Income Quintiles 1 & 2) Crosssectional Est. Fixed Effects Estimates High Income Families (Income Quintiles 4 & 5) Crosssectional Est. Fixed Effects Estimates Price of Fruit & Veg. 24.0650* 50.9861** 16.5493-2.5864 Price of Fast Food -18.2990*** -6.0993 3.6396-0.5089 Fast Food Rest. -0.345 0.0242 0.5648 0.9807 Non-fast Food Rest. 0.0533-0.0486-0.1814* -0.3267 Supermarket Stores -0.5748** -0.4598** 0.8223 0.7725 Convenience Stores -0.2212 0.7869* -1.2652* -1.5136 Grocery Stores -0.0024-0.021 0.3246 0.3158 Source: Powell and Chaloupka, University of Chicago Press, in press

Evidence from CDS-PSID: BMI Food Price Elasticities by SES Dependent Variable: BMI Percentile Among Children Cross-sectional Estimates All Low Income Low Education All Longitudinal Fixed Effects Estimates Low Income Low Education Price of Fruits & Vegetables Price of Fast Food 0.24*** 0.27* 0.36*** 0.25* 0.58** 0.47** -0.16-0.77*** -0.22 0.24-0.26 0.17 Source: Powell and Chaloupka, University of Chicago Press, in press

Evidence from NLSY79: Associations of Food Prices and Outlet Densities on Child BMI Model 1: Outlet Densities per 10,000 Capita Model 2: Outlet Densities per 10 Square Miles Price of Fruit and Vegetables 2.0143* 2.3823* Price of Fast Food -0.5068-0.5033 Fast Food Restaurants -0.1701 0.0190 Full-service Restaurants -0.0084-0.0002 Supermarkets 0.1329-0.1928* Convenience Stores 0.1349-0.0656 Grocery Stores -0.0678 0.0171 Regression coefficients from random effects model. * Denotes statistical significance with p-value 0.05 Source: Powell and Bao, Economics of Human Biology, 2009

Evidence from NLSY79: Price Elasticities of Child BMI by SES Fruit and Vegetable Price Elasticity of BMI Fast Food Price Elasticity of BMI Full Sample 0.0725* -0.0667 By Family Income Quintile Low Income 0.1357* -0.2565* Near-low Income 0.0273-0.0434 Middle Income 0.0837-0.1544 Near-high Income 0.0564-0.0629 High Income -0.0042 0.2036 By Mother s Education Mother At Most High School 0.0927* -0.1325* Mother College or Above 0.0436 0.0234 * Denotes statistical significance with p-value 0.05 Source: Powell and Bao, Economics of Human Biology, 2009

Summary of Associations with Child and Youth BMI Studies suggests that fiscal food pricing policies are likely to have modest but measurable effects, on average, on the weight outcomes of children and youths. Greater price sensitivity among: Low-income children Children with lower educated mothers Youths who are in the upper tail of the BMI distribution The evidence suggests a multi-pronged approach of changing relative prices by simultaneously subsidizing fruits and vegetables and taxing fast food to improve weight outcomes among adolescents and low-ses children. Improving access to supermarkets found to be important among low-ses children.

Evidence: Food Product Advertising: 2-11 Other, 18.0% Cereal, 27.6% Candy Bar, 2.1% Chewing Gum, 2.2% Cookies, 3.2% Frozen Waffles, 3.5% Fruit Drinks, 4.9% Restaurant, 5.4% Yogurt, 5.8% Candy, 7.0% Snacks, 8.3% Fast Food, 12.0% Source: Powell et al., Archives of Pediatrics and Adolescent Medicine, 2007

Food Product Advertising: 12-17 Others 24% Fast Food 23% Yogurt 2% Isotonic Drinks 3% Snacks 3% Fruit Drinks 3% Chewing Gum 5% Restaurant 6% Candy Bar 6% Soft Drink 6% Candy 7% Cereal 12% Source: Powell et al., American Journal of Preventive Medicine, 2007

Evidence: Nutritional Content of Food Products Viewed on TV By Children Aged 2-11 High Fat High Sat Fat High Sugar High Sodium All foods (100%) Cereal (33.3%) Sweets (22.7%) Snacks (13.9%) Drinks (9.6%) Other (20.4%) 17.1% 0.0% 41.6% 36.0% 0.0% 13.0% 21.2% 0.0% 47.4% 25.0% 3.2% 33.1% 80.7% 97.6% 88.6% 65.4% 99.5% 44.9% 12.3% 2.2% 0.0% 0.0% 0.1% 57.8% Low Fiber 81.6% 78.6% 82.2% 98.0% 99.9% 65.0% Either High Fat/Sugar/Sodium 97.8% 97.6% 96.3% 96.7% 99.5% 99.6% Source: Powell et al., Pediatrics, 2007

Examples of Potential Food-related Policy Instruments Taxes Subsidies Advertising Regulations Zoning Urban Planning Education School Food Service Policies

State Sales Tax Rates on Soda (as of January 1, 2009) 0% (n=17 states plus D.C.) 1 to < 3% (n=3 states) 5 to < 7% (n=19 states) 7% (n=4 states) 3 to < 5% (n=7 states) Source: Bridging the Gap Program, Health Policy Center, University of Illinois at Chicago, 2009. Data based on information compiled by The MayaTech Corporation. In addition to sales taxes, the following states currently apply excise taxes to bottles, syrups, and/or powders/mixes at the manufacturer, distributor, or retail level: AL, AR, RI, TN, VA, WA, and WV.

States With Sales Taxes on Sodas and Snack Foods Source: Chriqui, et al., Journal of Public Health Policy, 2008

State Sales Tax Rates for Sodas and Snack Foods Source: Chriqui, et al., Journal of Public Health Policy, 2008

ImpacTeen http://www.impacteen.org Economic, Lifestyle and Social Influences on Obesity http://www.impacteen.org/obesity Research studies presented were supported by: The Robert Wood Johnson Foundation Bridging the Gap ImpacTeen Project The National Research Initiative of the USDA Cooperative State Research, Education and Extension Service, Grant Number 2005-35215-15372.