VAT on Meat Could Slash EU Diets' Environmental Footprint, Study Reveals

From an economic perspective, you should add the product-related environmental costs incurred during production to the price. This would mean that the more CO₂ is emitted, the more expensive it becomes. Implementing such a graduated system for the enormous variety of foodstuffs, however, is very complex and therefore impractical, at least in the short term. That’s why we initially examine a straightforward option that is currently under political consideration: removing tax reductions on meat products.” Such a comprehensive price signal would reduce the other environmental impacts, beyond greenhouse gases, even a little more than the selective VAT price signal for meat. And above all, the comprehensive price signal could be enhanced over time in such a way that the policy fully addresses the problems, such as the climate and biodiversity crisis. Of course, this must be accompanied by a correspondingly strong social compensation through the reimbursement of revenues. The net costs of such a differentiated environmental tax on food would then fall to 12 euros per household per year. This would be a difficult, long-term project, that’s why our study also describes the option for a quick first step.”