An Alternative to Developing Stores in Food Deserts: Can Changes in SNAP Benefits Make a Difference?

In the search for policies to reduce the effects of limited food access, little consideration has been given to how economic incentives could be used to make it easier for low-income families to access existing healthy food retailers. Using county-level, administrative data on redemption of Supplemental Nutrition Assistance Program (SNAP) benefits by store type from May 2007 to May 2010, this paper investigates aggregate responses of SNAP participants to economic and policy changes. Results show that SNAP benefit increases, in general, are associated with a greater percentage of redemptions at superstores. However, other circumstances associated with the large increase in benefits enacted in April 2009 as a part of the stimulus bill reverse the positive effect. Estimates are stable across a number of specifications that also control for gas prices, store-type density, local unemployment and state policies. Results suggest that economic incentives deserve further consideration as an alternative to store development in food desert communities.