Assessing the effect of food retail subsidies on the price of food in remote Indigenous communities in Canada |
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| Affiliation: | 1. Government of Nova Scotia, 2021 Brunswick Street, PO Box 578, Halifax, Nova Scotia, Canada B3J 2S9;2. School of Public Policy and Administration, Carleton University, 5141 Richcraft Hall, Carleton University, 1125 Colonel By Drive, Ottawa, ON K1S 5B6, Canada;1. Department of Economics, University of Victoria, P.O. Box 1700, Stn CSC, Victoria, BC, V8W 2Y2, Canada;2. Social, Economic and Geographical Sciences Group, The James Hutton Institute, Craigiebuckler, Aberdeen, AB15 8QH, United Kingdom;3. Edmonton, Alberta, Canada |
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| Abstract: | The Canadian government currently subsidizes food retailers in the 25 remote communities in Nunavut through the Nutrition North Canada program. The program expects each dollar of the food subsidy to be fully passed on to the consumer in the form of lower prices. Unfortunately, existing audits and reviews of the program have failed to determine the pass-through rate of the subsidy. Using regression analysis on food price data in each of the 25 communities, subsidy rates, and covariates that control for community characteristics, we overcome the limitations of past research and provide the first-ever estimate of the pass-through rate of Nutrition North in Nunavut. Our results suggest that most, if not all, of the subsidy is passed on to the consumer in lower food prices. |
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| Keywords: | Food security Nutrition North Canada Subsidy pass-through Isolated communities |
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