Shopping sustainably is hard—but thoughtful price changes can nudge people in the right direction.
, a combined carbon and health tax policy on food products would significantly impact consumers’ purchasing decisions. These taxes would apply to carbon-intensive foods like beef or unhealthy foods like alcohol and sugary drinks. A healthier and more environment-friendly grocery run can reduce GHG emissions and improve the quality of diets at the same time.
The authors considered two approaches to address biodiversity loss and increasing GHG emissions: providing information about food products’ carbon and health impacts and imposing taxes based on their carbon and health impacts.The authors, including Exeter’s Bateman, conducted a survey by replicating an online supermarket to determine how information about carbon or health impacts, taxation, and combined information and tax affected consumers’ purchasing decisions.
Afterward, they were presented with the same list of products but with additional product information or new prices, depending on the hypothetical policy instrument. They faced one of three scenarios: carbon information and tax policies, health information and tax policies, or an unexplained tax followed by carbon and health information.
Both measures—providing carbon or health information and adding carbon or health taxes—helped move consumption towards healthier or lower-emissions foods, says Bateman. “Taxes were more effective than information, but the biggest effect is when both are used together,” he adds.The concern about carbon and health taxes is the potential disproportionate burden on low-income communities.
It’s important to ask whether different demographic groups spend the same proportion of household incomes on specific food products. If not, carbon and health taxes may have a different impact on high- and low-income communities, says Aseem Prakash, professor of political science at the University of Washington, Seattle and founding director of the UW Center for Environmental Politics.
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