The distributional impact of fiscal policies to promote healthier diets in low- and middle-income countries

Unhealthy diet and obesity are major risk factors for noncommunicable
diseases, leading to high treatment costs,
productivity, and welfare losses, representing a threat to
socio-economic development. There is increased interest in
consumption taxes to promote healthier diets, with a
growing body of evidence supporting their effectiveness.
However, their financial impact on the poorest is of
significant concern.
While these taxes are likely to appear regressive when
considering only the potential increase in spending to buy
taxed products, low-income consumers may experience
disproportionate health benefits through larger reductions
in unhealthy food consumption. Although these potential
health gains also translate into financial benefits, this has
not yet been quantified in the literature.
I believe that it is the role of economics to ensure that
preventive health policies improve social welfare and its
distribution across social groups. I aim to investigate the
distributional impact of fiscal policies to promote healthier
diets in low- and middle-income countries, particularly in
Latin America where obesity is pervasive. I will model the
impact of different fiscal policies on food expenditures and
the welfare benefits derived from potential diet
improvements per income group, in terms of reduction in
out-of-pocket expenditures to treat diseases related to
overweight and unhealthy diet and increased lifetime
labour incomes derived from reduced premature mortality.