Does Alcohol Prohibition Improve Caloric and Macronutrient Intake From Healthy Food Sources? Evidence From Bihar, India

ABSTRACT We examine the impact of a recent state‐led alcohol prohibition policy on caloric and macronutrient intake from healthy food sources in Bihar, India. We exploit an exogenous statewide ban on the production, sale, and consumption of alcohol implemented in 2016. Using data from two rounds of a nationally representative cross‐sectional survey conducted before and after the ban and employing a propensity score matching difference‐in‐differences framework, we find that alcohol prohibition led to significant increases in caloric, protein, and fat intake from healthy food sources. The policy was also associated with a decline in fat intake from unhealthy food sources. These findings are robust across a range of specifications and estimation strategies. Heterogeneity analysis reveals stronger effects among urban households, wealthier cohorts, and marginalized castes. The observed changes are likely driven by healthy behavioral spillovers, reduced marital conflicts, higher household earnings, income effects from the reallocation of resources previously spent on alcohol, and increased household spending on healthy food items such as pulses, dairy products, and healthy oils.