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Related Concept Videos

Fats as Energy Storage Molecules01:06

Fats as Energy Storage Molecules

Triglycerides are a form of long-term energy storage molecules. They are made of glycerol and three fatty acids. To obtain energy from fat, triglycerides must first be broken down by hydrolysis into their two principal components, fatty acids and glycerol. This process, called lipolysis, takes place in the cytoplasm. The resulting fatty acids are oxidized by β-oxidation into acetyl-CoA, which is used by the Krebs cycle. The glycerol that is released from triglycerides after lipolysis directly...
Fats as Energy Storage Molecules01:06

Fats as Energy Storage Molecules

Triglycerides are a form of long-term energy storage molecules. They are made of glycerol and three fatty acids. To obtain energy from fat, triglycerides must first be broken down by hydrolysis into their two principal components, fatty acids and glycerol. This process, called lipolysis, takes place in the cytoplasm. The resulting fatty acids are oxidized by β-oxidation into acetyl-CoA, which is used by the Krebs cycle. The glycerol that is released from triglycerides after lipolysis directly...
Applications of Integration to Find Consumer Surplus01:29

Applications of Integration to Find Consumer Surplus

In microeconomics, consumer surplus represents the economic gain that consumers experience when they purchase a good or service for less than the highest price they are willing to pay. This surplus arises from the characteristics of the demand function, which links the quantity of a good to the price consumers are willing to pay. As the quantity of a good increases, the price that consumers are willing to pay for each additional unit typically decreases, resulting in a downward-sloping demand...
Trophic Efficiency00:46

Trophic Efficiency

Trophic level transfer efficiency (TLTE) is a measure of the total energy transfer from one trophic level to the next. Due to extensive energy loss as metabolic heat, an average of only 10% of the original energy obtained is passed on to the next level. This pattern of energy loss severely limits the possible number of trophic levels in a food chain.
Second Law of Thermodynamics00:53

Second Law of Thermodynamics

The Second Law of Thermodynamics states that entropy, or the amount of disorder in a system, increases each time energy is transferred or transformed. Each energy transfer results in a certain amount of energy that is lost—usually in the form of heat—that increases the disorder of the surroundings. This can also be demonstrated in a classic food web. Herbivores harvest chemical energy from plants and release heat and carbon dioxide into the environment. Carnivores harvest the chemical energy...
Energy Balance01:19

Energy Balance

The human body gets energy from the three macronutrients: carbohydrates, proteins, and fats. Energy is released when the chemical bonds in the organic compounds present in the food are broken down. The energy content of food is measured in kilocalories (kcal), defined as the amount of heat required to raise the temperature of one kilogram of water by one degree Celsius. This value is determined by measuring the temperature change of the water surrounding a calorimeter after the complete...

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Updated: May 29, 2026

Fat Preference: A Novel Model of Eating Behavior in Rats
05:57

Fat Preference: A Novel Model of Eating Behavior in Rats

Published on: June 27, 2014

When do fat taxes increase consumer welfare?

Jayson L Lusk1, Christiane Schroeter

  • 1Department of Agricultural Economics, Oklahoma State University, Stillwater, OK 74078, USA. jayson.lusk@okstate.edu

Health Economics
|September 3, 2011
PubMed
Summary

A fat tax on sugary drinks is unlikely to benefit consumers. Consumers would need to value weight loss at $1500 per pound for the tax to be welfare-enhancing, suggesting other justifications are needed.

Area of Science:

  • Health Economics
  • Consumer Welfare Analysis
  • Public Health Policy

Background:

  • Previous fat tax analyses struggle to determine consumer benefits.
  • Assessing consumer welfare from such taxes requires a clear empirical framework.

Purpose of the Study:

  • To outline a simple method for assessing consumer benefits from fat taxes.
  • To determine if a tax on sugary beverages enhances individual consumer welfare.

Main Methods:

  • Comparing expenditure on taxed goods to the tax's weight effect.
  • Evaluating this ratio against an individual's willingness to pay for weight reduction.

Main Results:

  • Empirical calculations indicate a high willingness to pay ($1500/pound) for weight loss is needed for welfare enhancement.

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Last Updated: May 29, 2026

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  • A tax on sugary beverages is unlikely to be welfare-enhancing under standard assumptions.
  • Conclusions:

    • Soda taxes may not improve individual consumer welfare based on rational choice theory.
    • Alternative justifications for such policies may be necessary, potentially outside standard economic rationality.