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Christian Bager

Fat tax: Denmark's Fat tax strikes again | GlobalPost - 1 views

www.globalpost.com/...-denmark-fat-tax-strikes-again

denmark fat tax government

shared by Christian Bager on 01 Jun 12 - No Cached
  • Denmark first slapped a fat tax on saturated fats. Now lawmakers plan to hit sugar, and even chocolate consumption, in the second wave of its pioneering assault on the country's bulging waistlines and clogged arteries.
    • Christian Bager
      Christian Bager on 01 Jun 12
       
      The attempts of government intervention to change the demand of fat in the past and what the government is attempting to repeat now, in order to change the demand of sugar and chocolate. This will also change the supply of the goods, since the tax will hit the producer as well.
  • Denmark will levy an extra six Danish Kroner ($1.05) on every kilogram of chocolate. The tax would go into effect on January 1.
    • Christian Bager
      Christian Bager on 01 Jun 12
       
      This section shows the desired price, through the addition of the tax. It also gives a very exact target date for when the tax should be started up. This allows for graphs to be drawn before and after the event.
  • From 2013, lawmakers plan a levy on the sugar-content of processed food set at as much as 24 Kroner ($4.20) per kilogram.
    • Christian Bager
      Christian Bager on 01 Jun 12
       
      This shows how over time further taxes will be put on products, showing further change in demand and supply and the SRAS and LRAS.
  • ...6 more annotations...
  • "The new tax on sugar in food will first be implemented from 2013, and the details will be discussed in the coming year,"
    • Christian Bager
      Christian Bager on 01 Jun 12
       
      Showing that further un decided taxes are also going to be implemented.
  • The rationale is to improve the health in the Danish population by giving a stronger incitement to buy more healthy food.
    • Christian Bager
      Christian Bager on 01 Jun 12
       
      This shows the reasoning for the change in taxation. However it does not actually show that this will impact the demand of alternative products.
  • It's a trend that could be mimicked all over the world
    • Christian Bager
      Christian Bager on 01 Jun 12
       
      Showing that these taxes may spread into other economies.
  • Danish bakers, famed for their flaky cinnamon pastries, are predictably up in arms.
  • Mike Rayner, Director of Oxford University’s Health Promotion Research Group, said that combining the fat tax with higher taxes on sugary products would prevent people substituting fatty foods with sugary treats.
  • "I think the saturated fat tax by itself would not have been particularly useful, but a saturated fat tax in conjunction with a higher tax on sugary products means they are trying to tackle unhealthy foods on two fronts."
Adam Seldis

BBC News - Who what why: Why is there more oilseed rape being grown? - 31 views

www.bbc.co.uk/...magazine-18249840

Demand & Supply

shared by Adam Seldis on 30 May 12 - No Cached
Adam Seldis liked it
  • Why is there more oilseed rape being grown?
    • Adam Seldis
      Adam Seldis on 30 May 12
       
      This looks like it might a supply issue - so microeconomics supply and demand
  • more than ever before
    • Adam Seldis
      Adam Seldis on 30 May 12
       
      So there has been a shift outwards in supply. I can show this on a diagram. However I need to explain why it has shifted.
  • rocketing prices as it becomes more desirable for food
    • Adam Seldis
      Adam Seldis on 30 May 12
       
      So the only way this can be explained is that demand has increased more than the increase in supply, therefore leading to a 'rocketing' in prices. Again, would be good if I could explain why.
  • ...9 more annotations...
  • £388 per tonne, which compares to £240 in 2010
    • Adam Seldis
      Adam Seldis on 30 May 12
       
      I can use these numbers on my diagram. 240GBP was the original equilibrium price, 388GBP the new equilibrium.
  • 698,000 hectares in England and Wales and around 37,000 hectares in Scotland have been sown with oilseed rape this year, up about 6% on last year
    • Adam Seldis
      Adam Seldis on 30 May 12
       
      Again, I can use these figures in my diagram on the Quantity axis.
  • rapeseed oil is actually one of the highest quality vegetable oils, and it has gained a certain culinary respectability over recent years.
    • Adam Seldis
      Adam Seldis on 30 May 12
       
      This explains the shift in demand
  • "It's being used as mayonnaise, in margarine, salads, anywhere vegetables are used. It has a good health profile, has low saturated fat, is high in omega-3, and some claim it is better than sunflower oil," he say
    • Adam Seldis
      Adam Seldis on 30 May 12
       
      As does this.
  • The UK's "consistently high yields" of rapeseed have made the crop a success, according to Gagen.
    • Adam Seldis
      Adam Seldis on 30 May 12
       
      This partly explains the shift in supply
  • Other places like Germany, Poland and Ukraine have had a dreadful winter, the crops were exposed to severe cold temperatures, I suspect the French suffered as well.
    • Adam Seldis
      Adam Seldis on 30 May 12
       
      I can bring in here the concept of substitute goods - that German etc rape crops are a substitute good. That their fall in supply will have lead to an increase in the price for them, leading to a fall in demand. This will have lead to an increase in demand for UK rape crops. Could show this diagrammatically if needed.
  • and they are 45% oil - and the other 55% is high protein animal feed - they are an amazing piece of nature," he says. Burnett says oilseed rape is also being used for biodiesel, while a very small amount has specialist industrial uses, for instance as lubricants.
    • Adam Seldis
      Adam Seldis on 30 May 12
       
      Again, this explains the surge in demand. It has a number of different uses. (Called composite demand).
  • Burnett says oilseed rape has probably been more visible this year because it has flowered for almost twice its normal length of time - eight weeks, instead of four - as a cold and wet April and May stopped flowers developing and dying at their normal rate.
    • Adam Seldis
      Adam Seldis on 30 May 12
       
      We could start to use this as some kind of evaluation - the fact that there might not have been a shift in supply at all.
    • Adam Seldis
      Adam Seldis on 30 May 12
       
      So, overall, I could write a commentary about how a small shift in supply and a large shift in demand has led to an increase in the price for rape seed. I can easily show this with a diagram and explain the factors behind each movement. I would need to show the shift in supply being less than the shift in demand. For evaluation I could start to look at the impacts of PED and PES. Might they be inelastic or elastic and how might this impact the price mechanism. I could also speculate a little about what might happen in the future, based on the information in the article, and its impact on the price of rape seed in the UK
  • Adam Seldis on 30 May 12
     
    This is the article I would like you to read first. You may not use this one in the future.
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