Is it possible that banning trans fats could make foods more expensive? And if so, have you considered the magnitude/importance of this offsetting impact?
We incorporate this concern in the model. Just copying the relevant part on the report, here:
As for the cost of supply chain restructuring – this is about USD 7.92 million, as calculated through the following process:
Look at estimates of the aggregate cost of complying with a trans fat ban in the US, with this taking into consideration manufacturer reformulation (3 billion, one-time), relabelling (37 million, one-time), substitute ingredients (250 million per annum) and restaurant reformulation (570 million, one time), and divide through with US population in 2015 to get the relevant per capita costs.
Apply the same steps as described in estimating the cost of enforcement (i.e. factoring in intervention country’s population size, equivalent baseline years in which supply chain restructuring occurs, probability of advocacy success, and lower counterfactual value of non-EA financing) to both the one-time and ongoing costs here.
Is it possible that banning trans fats could make foods more expensive? And if so, have you considered the magnitude/importance of this offsetting impact?
We incorporate this concern in the model. Just copying the relevant part on the report, here:
As for the cost of supply chain restructuring – this is about USD 7.92 million, as calculated through the following process:
Look at estimates of the aggregate cost of complying with a trans fat ban in the US, with this taking into consideration manufacturer reformulation (3 billion, one-time), relabelling (37 million, one-time), substitute ingredients (250 million per annum) and restaurant reformulation (570 million, one time), and divide through with US population in 2015 to get the relevant per capita costs.
Apply the same steps as described in estimating the cost of enforcement (i.e. factoring in intervention country’s population size, equivalent baseline years in which supply chain restructuring occurs, probability of advocacy success, and lower counterfactual value of non-EA financing) to both the one-time and ongoing costs here.