 Petrol prices and obesityKushneel Prakash, Sefa Awaworyi Churchill and Russell Smyth Health Economics, 2022, vol. 31, issue 7, 1381-1401 Abstract: Using 13 waves of longitudinal data from Australia, we examine the relationship between petrol prices and obesity. Applying panel data models that control for individual fixed effects and the endogeneity of petrol prices, our results suggest that petrol prices have a negative effect on obesity. Specifically, our preferred instrumental variable estimates, which instrument for petrol prices using the Arca Oil Stock price and control for individual and time fixed effects, suggest that a standard deviation increase in petrol prices generates a 0.006 standard deviation decline in body mass index, while a unit increase in petrol prices results in a 2 percentage point decrease in the probability that a survey participant is obese. These results are robust to several sensitivity checks. Back of the envelope calculations suggest that our results imply that a permanent $1 per liter increase in petrol prices would reduce the number of people who were obese by 672,000 and save $1.4 billion dollars in medical expenditure related to obesity every year. We also find that frequency of participation in physical activity and expenditure on meals eaten out are channels through which petrol prices affect obesity. Date: 2022 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:wly:hlthec:v:31:y:2022:i:7:p:1381-1401 Access Statistics for this article Health Economics is currently edited by Alan Maynard, John Hutton and Andrew Jones More articles in Health Economics from John Wiley & Sons, Ltd. |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.