Cost-neutral food tax reforms for healthier and more sustainable diets

Bibliographic Data

ID21583596
AuthorsJörgen Larsson (0000-0002-7376-5499, Chalmers University of Technology, corresponding author), Edvin Månsson (Chalmers University of Technology), Elin Röös (0000-0002-3482-2286, Swedish University of Agricultural Sciences), Sarah Säll (0000-0002-2134-1440, Swedish University of Agricultural Sciences), Emma Patterson (0000-0003-1208-0936, Karolinska Institutet), Liselotte Schäfer Elinder (0000-0001-7270-1162, Karolinska Institutet), Jonas Nässén (0000-0002-1564-8585, Chalmers University of Technology), Emma Ejelöv (0000-0003-3530-6870, Chalmers University of Technology)
Year2026
Volume240
Pages108822
Publication date2026-02-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueEcological Economics (JOURNAL)
Journal identifiersISSN: 0921-8009 • E-ISSN: 1873-6106
PublisherElsevier BV (PUBLISHER)
DOI10.1016/j.ecolecon.2025.108822
OpenAlexW4416244770
LanguageEN
References cited53

This study evaluates cost-neutral food tax reforms integrating climate and health objectives, compared with strictly climate- and health-focused reforms. Results indicate that a strict climate-focused reform risks negative health outcomes, while the strict health-focused reform achieves only 40 % of the climate benefit of the integrated reforms and adversely impacts animal welfare. Integrated tax reforms, however, could reduce Sweden's food carbon footprint by an amount equivalent to an 8 % reduction in passenger car emissions, alongside co-benefits such as decreased pesticide and fertilizer use and lower ammonia emissions. In addition, the healthier diets simulated as a result of the integrated reforms are estimated to save more than twice as many lives as those lost to road traffic fatalities. Furthermore, the strict climate- and health-focused reforms lead to higher food costs, disproportionately affecting low-income groups. The integrated reforms were designed to be cost-neutral by applying subsidies in the form of VAT exemptions on healthy foods or through the redistribution of tax revenues to all citizens. This study demonstrates that it is possible to design food tax reforms to achieve substantial environmental and health improvements while avoiding additional financial burdens on consumers, suggesting a promising pathway for policy development. • Food tax reforms can bring substantial environmental and health benefits. • Reforms can cut food climate footprint equal to 8 % of car emissions in Sweden. • The improved diets may save twice as many lives as road traffic fatalities. • Cost-neutral designs ensure that no income group is financially disadvantaged

Carbon Footprint · Carbon tax · Revenue · Subsidy · Tax reform · Tax revenue · Agricultural Economics and Policy · Agriculture Sustainability and Environmental Impact · Food Waste Reduction and Sustainability

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