UK study: Carbon labels and taxes on food could cut greenhouse gas emissions by nearly 5% while benefiting society
miragenews.comA new study from the University of Trento and the University of Exeter finds that combining carbon labels on supermarket food with a moderate tax on high-emission products could reduce UK greenhouse gas emissions by almost 5%. The research, published in the Journal of Environmental Economics and Management, used a simulated online supermarket with about 5,000 UK respondents to test how people change their food choices under different policy setups. Carbon labels alone cut the carbon content of the average food basket by 5.6%, equal to 2.7% of UK emissions. A tax of 60 pounds per tonne of CO2e on the most carbon-intensive items was nearly twice as effective but cost consumers 79 pounds per person per year. The sweet spot was a lower tax of 28 pounds per tonne combined with labels, which achieved a 10% basket reduction (4.7% of UK emissions) at a cost of only 34 pounds per person per year. The researchers argue the social benefits from lower emissions and public revenue more than offset the cost, yielding a net benefit of 13 pounds per person per year. They also note that redistributing tax revenues per capita could eliminate regressive impacts on lower-income households. Meat-heavy diets showed the biggest response to carbon labels, suggesting information campaigns can drive meaningful change.
