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Distributional Impacts of Fat Taxes and Thin Subsidies

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  • Laurent Muller
  • Anne Lacroix
  • Jayson L. Lusk
  • Bernard Ruffieux

Abstract

We conducted an experiment to study the fiscal impacts of unhealthy food taxes and healthy food subsidies on very low and medium income women in France. The policies tend to be regressive and favour the higher income consumers. Unhealthy food taxes increase prices paid more for low than higher income women. Healthy food subsidies reduce the prices paid more for higher than lower income women. The effects arise because the pre-policy diets of the higher income women tend to be healthier but also because the choices of the higher income women are more responsive to price changes.
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Suggested Citation

  • Laurent Muller & Anne Lacroix & Jayson L. Lusk & Bernard Ruffieux, 2017. "Distributional Impacts of Fat Taxes and Thin Subsidies," Economic Journal, Royal Economic Society, vol. 127(604), pages 2066-2092, September.
    • Handle: RePEc:wly:econjl:v:127:y:2017:i:604:p:2066-2092
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    File URL: http://hdl.handle.net/10.1111/ecoj.2017.127.issue-604
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