Putting a tax on climate-intensive food could reduce impact, new study shows
Food production can have a large impact on the climate. And certain foods can have more of an impact than others.
A new study, published in Ecological Economics, looked at how introducing a tax on foods that take a larger toll on the environment could help curb the climate impact of food production.
Food’s health and climate impact
Not all foods affect the environmentequally. In the EU, agriculture accountsfor about 11 per cent of total greenhouse gas emissions. The meat and dairy industries are major contributors.
A recent report published by the EAT-Lancet Commissionfound that worldwide, 15 million deaths could be avoided each year if people shift to predominantly plant-based diets. Such a shift could also decrease agricultural emissions by 15 per cent.
This new study builds on their findings, looking at the effects of imposing levies on certain foods that have big climate impacts.
“Today’s diets are making us sick and negatively impacting the climate,” says study co-author Jörgen Larsson, researcher at Chalmers University of Technology. “If we want to do something about this collectively, taxes and subsidies are a good way forward.”
Sweden as a case study
The recent study looked specifically at Sweden, where the negative impact on the climate from food consumption is roughly twice that of the direct emissions from all passenger car traffic, according to the study.
Researchers looked at the potential effects of what they call a “food tax shift” – where value-added tax or VAT is removed fromhealthy foods to encourage purchase and taxes are added for more climate-intensive foods. It focused on four food groups: fruits, vegetables, and legumes; whole grain products; beef, lamb, pork, and processed meat; and sugar-sweetened beverages.
Price changes have already been shown to affect consumer behaviour in Sweden. In the 1990s,beef consumption increased by 50 per cent because the price nearly halved.
Reduced consumption and climate impact
In the current study, the greatest difference would be in the prices of beef andlamb. The tax changes would cause an increase of 25 per cent, or almost €3 per kilo. Researchers say this could reduce meat consumption in the country by 19 per cent.
They also found that the food tax shift would have both environmental and human health benefits. Such reform could reduce the climate footprint of Swedes’ food consumption by an equivalent of about 700,000 tonnes of carbon dioxide per year. That is the same as an 8 per cent reduction in emissions from passenger cars or nearly one in ten cars disappearing from Sweden’s roads.
The authors see this “food tax shift” as an ideal way forward, especially because it is “cost neutral”. Making some foods more expensive and others cheaper can help with public acceptance.
“Not everyone needs to become vegetarian for the sake of the climate, but with more moderate consumption, a lot stands to be gained,” says Larsson.
