Economic impacts of dietary improvements in New Zealand: Computable general equilibrium modelling

In this report, we estimate some economic costs and benefits associated with better diets in New Zealand. The healthier diets have more fruit and vegetables and less processed meat and fizzy drink. Because this change involves moving consumers from their currently preferred diet, it creates a loss of economic welfare. We compare that loss to potential productivity benefits.
 
We find that estimated costs and benefits are small in relation to the economy – a fraction of one percent. However, the results do not account for any potential savings in healthcare costs.
 
We also present and use a framework for organising literature on diet and workplace impacts to connect diet to economic productivity.
 
This project was led by the University of Otago and funded by the Health Research Council (project 23/026).
 
The research demonstrates the value of interdisciplinary research and combined modelling exercises. The insights from the research were only possible by collaborating across specialisations.

This paper was prepared at NZIER by Dr Bill Kaye-Blake, Daniel Hamill, and Dr Cristina
Cleghorn (University of Otago).

Funding for this report was provided by the Health Research Council of New Zealand.