Comparing Alternative Economic Mechanisms To Increase Fruit and Vegetable Purchases

Mark Prell and David Smallwood

No 256715, Economic Information Bulletin from United States Department of Agriculture, Economic Research Service

Abstract: Participants in USDA's Supplemental Nutrition Assistance Program (SNAP) typically consume less than the amounts of fruits and vegetables (FVs) recommended by the Dietary Guidelines for Americans. The study considers three economic mechanisms to incentivize purchases of FVs: a bonus for FV spending; a rebate for FV spending; and a Cash Value Voucher (CVV) redeemable for FVs up to a fixed dollar amount. This USDA Economic Research Service (ERS) report uses neoclassical economics to provide a unifying conceptual framework for explaining the effects of these mechanisms, using simplified abstract models. In principle, all three mechanisms can increase FV purchases for the average SNAP consumer. Distributional effects matter in addition to average effects; SNAP consumers who purchase no FVs (in a typical month) can be a sizable subgroup that is important for analysis. For that subgroup, implementing a CVV tends to increase purchases by more than other mechanisms. If the nonpurchasing subgroup is a large proportion of SNAP households, a CVV also tends to be the mechanism that increases average FV purchases the most. If the subgroup is relatively small, a rebate or bonus may promote average FV purchases the most.

Keywords: Agricultural and Food Policy; Consumer/Household Economics; Demand and Price Analysis; Food Consumption/Nutrition/Food Safety; Health Economics and Policy; Public Economics (search for similar items in EconPapers)
Pages: 33
Date: 2017-04-05
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:uersib:256715

DOI: 10.22004/ag.econ.256715

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