How effective is a fat subsidy? Evidence from edible oil consumption in India
研究了印度三个邦将棕榈油纳入公共分配系统的补贴政策，发现补贴增加了棕榈油消费并替代了传统油，但未显著改变总食用油消费，对政策制定者评估财政干预效果有参考价值。
Abstract Taxes on fats and sugar‐sweetened beverages are deployed in the developed world to encourage healthier diets. How effective might such fiscal instruments be in emerging economies? We evaluate the impacts of a subsidy for palm oil, introduced as part of the public distribution system in three Indian states. Using variants of the difference‐in‐differences approach, we find that palm oil consumption increased, particularly in rural areas, as a result of the subsidy, and traditional oils were displaced by cheaper palm oil. However, the intervention did not significantly alter overall edible oil consumption. These results are robust to different specifications, alternative estimation samples, and the exclusion of households who may have been potential beneficiaries of other interventions. Impacts were higher in Tamil Nadu than in other states, and were higher for vegetarian households in rural areas. There was only weak evidence of spillover income effects on other food groups. Given India's dual burden of malnutrition, our analysis suggests that fiscal policy interventions have the potential to effectively nudge consumer choices towards healthier edible oil consumption.