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Sugar-sweetened beverages in Nigeria: Affordability and expenditure and price elasticities
This research examines how consumers in Nigeria respond to income and price changes of carbonated soft drinks (CSDs). I first analysed the trend in CSD and fruit juice affordability between 2005 and 2018. I subsequently estimated the own-price, cross-price and income elasticities of sugar, CSDs, cho...
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| Format: | Thesis |
| Language: | English |
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School of Economics
2022
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| _version_ | 1867613183808634880 |
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| access_status_str | Open Access |
| author | Darsamo, Arnalda Vanessa |
| author2 | van Walbeek, Corne |
| author_browse | Darsamo, Arnalda Vanessa van Walbeek, Corne |
| author_facet | van Walbeek, Corne Darsamo, Arnalda Vanessa |
| author_sort | Darsamo, Arnalda Vanessa |
| collection | Thesis |
| description | This research examines how consumers in Nigeria respond to income and price changes of carbonated soft drinks (CSDs). I first analysed the trend in CSD and fruit juice affordability between 2005 and 2018. I subsequently estimated the own-price, cross-price and income elasticities of sugar, CSDs, chocolate drinks, milk and sachet water for Nigeria in 2013, 2016 and a pooled sample. I used the relative income price to examine CSD and fruit juice affordability over time in Nigeria for both off-trade and on-trade consumption. For estimating the own-price, cross-price and expenditure elasticities, I used the Nigeria Household Survey, Panel (2013 and 2016) data, using the Almost Ideal Demand System. I applied Deaton's unit value model and used unit values as prices and used the Heckman procedure to correct for selection bias. For CSDs, the own-price elasticities ranged from - 0.8 to -1.8. All income (approximated by household expenditure) elasticities were positive implying all the commodities are normal goods. The income elasticity of demand lies at approximately 0.4 for CSDs. The results suggest that Nigeria can curb the consumption of excess sugar, in particular excess sugar in CSDs, by raising the price by implementing an excise tax on the sugar content in CSDs. Future research should estimate the health gains and government revenue that can be generated from such a tax. Such estimates are crucial to motivate for a sugar tax. |
| format | Thesis |
| id | oai:open.uct.ac.za:11427/35611 |
| institution | University of Cape Town (South Africa) |
| language | eng |
| last_indexed | 2026-06-10T12:32:06.010Z |
| license_str | Not specified — see source repository |
| provenance_str_mv | Harvested via OAI-PMH from UCTD — University of Cape Town Open Access Repository |
| publishDate | 2022 |
| publishDateRange | 2022 |
| publishDateSort | 2022 |
| publisher | School of Economics |
| publisherStr | School of Economics |
| record_format | dspace |
| source_str | UCTD — University of Cape Town Open Access Repository |
| spelling | oai:open.uct.ac.za:11427/35611 Sugar-sweetened beverages in Nigeria: Affordability and expenditure and price elasticities Darsamo, Arnalda Vanessa van Walbeek, Corne Applied Economics This research examines how consumers in Nigeria respond to income and price changes of carbonated soft drinks (CSDs). I first analysed the trend in CSD and fruit juice affordability between 2005 and 2018. I subsequently estimated the own-price, cross-price and income elasticities of sugar, CSDs, chocolate drinks, milk and sachet water for Nigeria in 2013, 2016 and a pooled sample. I used the relative income price to examine CSD and fruit juice affordability over time in Nigeria for both off-trade and on-trade consumption. For estimating the own-price, cross-price and expenditure elasticities, I used the Nigeria Household Survey, Panel (2013 and 2016) data, using the Almost Ideal Demand System. I applied Deaton's unit value model and used unit values as prices and used the Heckman procedure to correct for selection bias. For CSDs, the own-price elasticities ranged from - 0.8 to -1.8. All income (approximated by household expenditure) elasticities were positive implying all the commodities are normal goods. The income elasticity of demand lies at approximately 0.4 for CSDs. The results suggest that Nigeria can curb the consumption of excess sugar, in particular excess sugar in CSDs, by raising the price by implementing an excise tax on the sugar content in CSDs. Future research should estimate the health gains and government revenue that can be generated from such a tax. Such estimates are crucial to motivate for a sugar tax. 2022-01-31T07:48:37Z 2022-01-31T07:48:37Z 2021 2022-01-26T12:48:02Z Master Thesis Masters MCom http://hdl.handle.net/11427/35611 eng application/pdf School of Economics Faculty of Commerce |
| spellingShingle | Applied Economics Darsamo, Arnalda Vanessa Sugar-sweetened beverages in Nigeria: Affordability and expenditure and price elasticities |
| thesis_degree_str | Master's |
| title | Sugar-sweetened beverages in Nigeria: Affordability and expenditure and price elasticities |
| title_full | Sugar-sweetened beverages in Nigeria: Affordability and expenditure and price elasticities |
| title_fullStr | Sugar-sweetened beverages in Nigeria: Affordability and expenditure and price elasticities |
| title_full_unstemmed | Sugar-sweetened beverages in Nigeria: Affordability and expenditure and price elasticities |
| title_short | Sugar-sweetened beverages in Nigeria: Affordability and expenditure and price elasticities |
| title_sort | sugar sweetened beverages in nigeria affordability and expenditure and price elasticities |
| topic | Applied Economics |
| url | http://hdl.handle.net/11427/35611 |
| work_keys_str_mv | AT darsamoarnaldavanessa sugarsweetenedbeveragesinnigeriaaffordabilityandexpenditureandpriceelasticities |