Food taxation: an effective driver for adopting sustainable diets?

2022 Alpro Foundation Award for best scientific publication

Our second award winner of 2022, Michela Faccioli, investigated the impact of applying taxes, with or without on-pack health and/or carbon information on food purchase patterns and the potential consequent impact on greenhouse gas emissions and dietary health.

Aim

To investigate impactful strategies that drive consumer demand towards more sustainable food choices for improved planetary and human health outcomes. Specifically, the role of food taxation and carbon footprint and health information were assessed individually and in combination.

Study design

A survey-based, randomised controlled study undertaken with 5,912 UK participants.

Baseline

All participants were asked to report their typical food and beverage purchases for home consumption from a pre-determined food shopping list with prices indicated.

They were then randomly assigned to one of three strategies, with each strategy having two phases

Carbon Information Tax - CIT

• First phase: participants were asked to make their usual food and drink selection using the baseline food list, but this time with additional information about the carbon footprint against each food.

• Second phase: participants made their usual food choices with tax added to the baseline prices in addition to the carbon information. The prices were adapted to reflect the degree of carbon emissions with higher prices for higher carbon emitting foods.

Health Information Tax - HIT

• First phase: participants were asked to make their usual food and drink selection using the baseline food list, but this time with the addition of the NutriScore visual nutrient labelling system against each food.

• Second phase: participants made their food choices with tax added to the baseline prices in addition to the NutriScore label. The prices were adapted to reflect the degree of 'unhealthiness' of the food based on the NutriScore, with higher prices for the less healthy scores.

Unlabeled Tax and Carbon Health Tax - UT/CHT

• First phase: participants were asked to make their usual food and drink selection using the baseline food list, but this time with tax applied to the original price to reflect the degree of both unhealthfulness and carbon emissions of the food. The consumer was not provided with an explanation for the change in price.

• Second phase: participants made their food choices with the added tax to the price, but also with carbon and nutrition information.

Results

A large proportion of the participants food spend was on meat, beverages and fruit and vegetables (see table below)

Average annual greenhouse gas (GHG) emission per person = 3,200 kg CO2 equiv. emissions

This is equivalent to 8.8kg per person per day

Meat purchases were by far the biggest contributors accounting for 58% of the dietary GHG emissions, predominantly from unprocessed beef.

Impact on GHG emissions

Incorporation of tax with or without carbon and health information had the biggest impact on reducing carbon emissions.

The CIT and UT/CHT strategies could result in a 558kg and 605kg reduction in an individuals annual GHG emission, respectively. HIT provided the lowest reductions at -184kg.

Potential annual GHG emission reductions per person according to the different strategies applied.

Reductions in unprocessed beef produced the biggest annual drop , -204 to -372kg CO2 equiv. compared to baseline.

Impact on health outcomes

The UT/CHT & HIT strategies produced similar and the biggest drop in the sale of foods with unhealthier NutriScore values.

• Reduction in snacks, sugary drinks and alcohol

• Increase sales of fruit and vegetables

Conclusion

Application of a combined food tax with health and carbon information would produce a large and favourable consumer purchasing shift towards foods with a lower carbon footprint and positive nutrient profile.

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