UMass Amherst economists find 35% tax and outright ban yield similar results
Professors Debi Prasad Mohapatra, Christoph Bauner, and Emily Wang led a study on whether or not there should be a tax on partially hydrogenated oil (PHO) or a complete ban of the ingredient as it has been deemed unhealthy. The paper titled, "Unhealthy Food, Regulations, and Consumer Welfare: The US Microwaveable Popcorn Market" was first published this June and has since been picked up by the local Western Mass News.
“We chose to study microwaveable popcorn because it is ubiquitous and can easily be produced with or without PHO, but our model can be used to assess policies to reduce unhealthy ingredients in a range of products—from trans fat in other processed foods to sugar in soft drinks,” Mohapatra says.
PHO is an inexpensive additive that can improve the taste, texture, cooking performance and shelf life of foods. However, as a source of trans fat, it can contribute to heart disease, stroke and Type 2 diabetes.