A Cash-back Rebate Program for Healthy Food Purchases in South Africa: Selection and Program Effects in Self-reported...

A South African insurer launched a rebate program for healthy food purchases for its members, but only available in program-designated supermarkets. To eliminate selection bias in program enrollment, we estimated the impact of subsidies in nudging the population towards a healthier diet using an instrumental variable approach.

Data came from a health behavior questionnaire administered among members in the health promotion program. Individual and supermarket addresses were geocoded and differential distances from home to program-designated supermarkets versus competing supermarkets were calculated. Bivariate probit and linear instrumental variable models were performed to control for likely unobserved selection biases, employing differential distances as a predictor of program enrollment.

For regular fast-food, processed meat, and salty food consumption, approximately two-thirds of the difference between participants and nonparticipants was attributable to the intervention and one-third to selection effects. For fruit/ vegetable and fried food consumption, merely one-eighth of the difference was selection. The rebate reduced regular consumption of fast food by 15% and foods high in salt/sugar and fried foods by 22%- 26%, and increased fruit/vegetable consumption by 21% (0.66 serving/day).

Large population interventions are an essential complement to laboratory experiments, but selection biases require explicit attention in evaluation studies conducted in naturalistic settings.