A proposed 'meat tax' could have a substantial impact on reducing environmental footprint. According to a recent study published in Nature Food, applying full Value Added Tax (VAT) rates to meat products such as beef, pork, lamb, and chicken could significantly decrease the ecological damage caused by these food items.
Meat is currently exempt from VAT in 22 out of 27 EU member states, resulting in lower prices that fail to accurately reflect the environmental costs associated with their production. This price disparity serves as a 'price signal' that screens consumers from the social and environmental consequences of meat consumption.
The new study found that the global environmental footprint of meat is substantially higher than plant-based foods when it comes to climate impact, biodiversity loss, land use, and pollution. However, water usage is an exception.
By removing tax breaks on these food items, governments could potentially reduce greenhouse gas emissions by 29.9 megatons per year, which is about 5% of the total emissions in the EU. This reduction would be accompanied by a decrease in ecological destruction of between 3% and 6%.
A full VAT implementation or carbon pricing could bring down net household costs related to food to โฌ26 (ยฃ23) per year if tax revenues are redistributed through payments to citizens, according to the study.
While the proposed policy reforms may seem expensive for consumers, Charlotte Plinke from the Potsdam Institute for Climate Impact Research notes that the true value lies in reducing environmental destruction.
Meat is currently exempt from VAT in 22 out of 27 EU member states, resulting in lower prices that fail to accurately reflect the environmental costs associated with their production. This price disparity serves as a 'price signal' that screens consumers from the social and environmental consequences of meat consumption.
The new study found that the global environmental footprint of meat is substantially higher than plant-based foods when it comes to climate impact, biodiversity loss, land use, and pollution. However, water usage is an exception.
By removing tax breaks on these food items, governments could potentially reduce greenhouse gas emissions by 29.9 megatons per year, which is about 5% of the total emissions in the EU. This reduction would be accompanied by a decrease in ecological destruction of between 3% and 6%.
A full VAT implementation or carbon pricing could bring down net household costs related to food to โฌ26 (ยฃ23) per year if tax revenues are redistributed through payments to citizens, according to the study.
While the proposed policy reforms may seem expensive for consumers, Charlotte Plinke from the Potsdam Institute for Climate Impact Research notes that the true value lies in reducing environmental destruction.