IDEAS home Printed from https://ideas.repec.org/a/eee/ecolec/v233y2025ics0921800925000795.html
   My bibliography  Save this article

Reducing the environmental impact of food consumption through fiscal policies: The case of Spain

Author

Listed:
  • Gutiérrez, María-José
  • Inguanzo, Belén
  • Orbe, Susan

Abstract

This study examines the environmental impacts of human food consumption from an economic policy perspective, investigating how fiscal policy can mitigate the environmental footprints associated with this consumption. Focusing on carbon emissions (CF), water use (WF), and food loss and waste (FLW), the analysis uses Spain as a case study to estimate price elasticities of footprints (how footprints respond to a 1% price increase in each food category). Optimization techniques are applied to evaluate fiscal food policies based on social preferences for footprint mitigation. Main findings are: (i) increasing the price of specific food categories can lead to unintended increases in some footprints, (ii) generalized VAT increases have a moderate impact, with up to 3% reduction in CF and less than 0.5% reduction in WF and FLW for a 20pp VAT rise, (iii) optimal taxation and subsidy achieve greater reductions, with up to 18% in CF and 11% in WF when social preferences prioritize mitigation of CF and WF, respectively, and (iv) targeted policies may have nutritional trade-offs, such as reducing essential micronutrients or increasing unhealthy components such saturated fats and sodium, emphasizing the need for balanced policy design.

Suggested Citation

  • Gutiérrez, María-José & Inguanzo, Belén & Orbe, Susan, 2025. "Reducing the environmental impact of food consumption through fiscal policies: The case of Spain," Ecological Economics, Elsevier, vol. 233(C).
  • Handle: RePEc:eee:ecolec:v:233:y:2025:i:c:s0921800925000795
    DOI: 10.1016/j.ecolecon.2025.108596
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0921800925000795
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.ecolecon.2025.108596?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Mara-José Gutiérrez & Belén Inguanzo & Susan Orbe, 2021. "Distributional impact of COVID-19: regional inequalities in cases and deaths in Spain during the first wave," Applied Economics, Taylor & Francis Journals, vol. 53(31), pages 3636-3657, July.
    2. Blundell, Richard & Robin, Jean Marc, 1999. "Estimation in Large and Disaggregated Demand Systems: An Estimator for Conditionally Linear Systems," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 14(3), pages 209-232, May-June.
    3. Mounsey, Sarah & Veerman, Lennert & Jan, Stephen & Thow, Anne Marie, 2020. "The macroeconomic impacts of diet-related fiscal policy for NCD prevention: A systematic review," Economics & Human Biology, Elsevier, vol. 37(C).
    4. Hunt Allcott & Benjamin B Lockwood & Dmitry Taubinsky, 2019. "Regressive Sin Taxes, with an Application to the Optimal Soda Tax," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 134(3), pages 1557-1626.
    5. Gustavsen, Geir Wæhler & Rickertsen, Kyrre, 2013. "Adjusting VAT rates to promote healthier diets in Norway: A censored quantile regression approach," Food Policy, Elsevier, vol. 42(C), pages 88-95.
    6. Harding, Matthew & Lovenheim, Michael, 2017. "The effect of prices on nutrition: Comparing the impact of product- and nutrient-specific taxes," Journal of Health Economics, Elsevier, vol. 53(C), pages 53-71.
    7. Duarte, Rosa & Pinilla, Vicente & Serrano, Ana, 2014. "The water footprint of the Spanish agricultural sector: 1860–2010," Ecological Economics, Elsevier, vol. 108(C), pages 200-207.
    8. Iftekhar, Md Sayed & Polyakov, Maksym & Rogers, Abbie, 2022. "Social preferences for water sensitive housing features in Australia," Ecological Economics, Elsevier, vol. 195(C).
    9. Deaton,Angus & Muellbauer,John, 1980. "Economics and Consumer Behavior," Cambridge Books, Cambridge University Press, number 9780521296762, Enero-Abr.
    10. Obuobi, Bright & Zhang, Yifeng & Adu-Gyamfi, Gibbson & Nketiah, Emmanuel & Grant, Martin Kobby & Adjei, Mavis & Cudjoe, Dan, 2022. "Fruits and vegetable waste management behavior among retailers in Kumasi, Ghana," Journal of Retailing and Consumer Services, Elsevier, vol. 67(C).
    11. Funke, Franziska & Mattauch, Linus & van den Bijgaart, Inge & Godfray, Charles & Hepburn, Cameron & Klenert, David & Springmann, Marco & Treich, Nicholas, 2021. "Is Meat Too Cheap? Towards Optimal Meat Taxation," INET Oxford Working Papers 2021-08, Institute for New Economic Thinking at the Oxford Martin School, University of Oxford.
    12. Chakori, Sabrina & Aziz, Ammar Abdul & Smith, Carl & Dargusch, Paul, 2021. "Untangling the underlying drivers of the use of single-use food packaging," Ecological Economics, Elsevier, vol. 185(C).
    13. Yu, Yang & Hubacek, Klaus & Feng, Kuishuang & Guan, Dabo, 2010. "Assessing regional and global water footprints for the UK," Ecological Economics, Elsevier, vol. 69(5), pages 1140-1147, March.
    14. Garcia-Herrero, I. & Hoehn, D. & Margallo, M. & Laso, J. & Bala, A. & Batlle-Bayer, L. & Fullana, P. & Vazquez-Rowe, I. & Gonzalez, M.J. & Durá, M.J. & Sarabia, C. & Abajas, R. & Amo-Setien, F.J. & Qu, 2018. "On the estimation of potential food waste reduction to support sustainable production and consumption policies," Food Policy, Elsevier, vol. 80(C), pages 24-38.
    15. Falbe, J. & Rojas, N. & Grummon, A.H. & Madsen, K.A., 2015. "Higher retail prices of sugar-sweetened beverages 3 months after implementation of an excise tax in Berkeley, California," American Journal of Public Health, American Public Health Association, vol. 105(11), pages 2194-2201.
    16. Hunt Allcott & Benjamin B. Lockwood & Dmitry Taubinsky, 2019. "Should We Tax Sugar-Sweetened Beverages? An Overview of Theory and Evidence," Journal of Economic Perspectives, American Economic Association, vol. 33(3), pages 202-227, Summer.
    17. Caillavet, France & Fadhuile, Adélaïde & Nichèle, Véronique, 2019. "Assessing the distributional effects of carbon taxes on food: Inequalities and nutritional insights in France," Ecological Economics, Elsevier, vol. 163(C), pages 20-31.
    18. Qing Liu & Zhen Yan & Jiehong Zhou, 2017. "Consumer Choices and Motives for Eco-Labeled Products in China: An Empirical Analysis Based on the Choice Experiment," Sustainability, MDPI, vol. 9(3), pages 1-12, February.
    19. Franziska Funke & Linus Mattauch & Inge van den Bijgaart & H. Charles J. Godfray & Cameron Hepburn & David Klenert & Marco Springmann & Nicolas Treich, 2022. "Toward Optimal Meat Pricing: Is It Time to Tax Meat Consumption?," Review of Environmental Economics and Policy, University of Chicago Press, vol. 16(2), pages 219-240.
    20. Falbe, J. & Thompson, H.R. & Becker, C.M. & Rojas, N. & McCulloch, C.E. & Madsen, K.A., 2016. "Impact of the Berkeley excise tax on sugar-sweetened beverage consumption," American Journal of Public Health, American Public Health Association, vol. 106(10), pages 1865-1871.
    21. Chapagain, A.K. & Hoekstra, A.Y., 2011. "The blue, green and grey water footprint of rice from production and consumption perspectives," Ecological Economics, Elsevier, vol. 70(4), pages 749-758, February.
    22. Law, Cherry & Cornelsen, Laura & Adams, Jean & Pell, David & Rutter, Harry & White, Martin & Smith, Richard, 2020. "The impact of UK soft drinks industry levy on manufacturers’ domestic turnover," Economics & Human Biology, Elsevier, vol. 37(C).
    23. Säll, Sarah & Gren, Ing-Marie, 2015. "Effects of an environmental tax on meat and dairy consumption in Sweden," Food Policy, Elsevier, vol. 55(C), pages 41-53.
    24. Aguilar, Arturo & Gutierrez, Emilio & Seira, Enrique, 2021. "The effectiveness of sin food taxes: Evidence from Mexico," Journal of Health Economics, Elsevier, vol. 77(C).
    25. Cornelsen, Laura & Mazzocchi, Mario & Smith, Richard D., 2019. "Fat tax or thin subsidy? How price increases and decreases affect the energy and nutrient content of food and beverage purchases in Great Britain," Social Science & Medicine, Elsevier, vol. 230(C), pages 318-327.
    26. Grebitus, Carola & Steiner, Bodo & Veeman, Michele, 2015. "The roles of human values and generalized trust on stated preferences when food is labeled with environmental footprints: Insights from Germany," Food Policy, Elsevier, vol. 52(C), pages 84-91.
    27. Laurent Muller & Anne Lacroix & Bernard Ruffieux, 2019. "Environmental Labelling and Consumption Changes: A Food Choice Experiment," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 73(3), pages 871-897, July.
    28. Adolf Buse, 1994. "Evaluating the Linearized Almost Ideal Demand System," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 76(4), pages 781-793.
    29. Azucena Gracia & Miguel I. Gómez, 2020. "Food Sustainability and Waste Reduction in Spain: Consumer Preferences for Local, Suboptimal, And/Or Unwashed Fresh Food Products," Sustainability, MDPI, vol. 12(10), pages 1-15, May.
    30. de Boer, Joop & Aiking, Harry, 2021. "Climate change and species decline: Distinct sources of European consumer concern supporting more sustainable diets," Ecological Economics, Elsevier, vol. 188(C).
    31. Maurizio Canavari & Silvia Coderoni, 2020. "Consumer stated preferences for dairy products with carbon footprint labels in Italy," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 8(1), pages 1-16, December.
    32. Burggraf, Christine & Kuhn, Lena & Zhao, Qi-ran & Teuber, Ramona & Glauben, Thomas, 2015. "Economic growth and nutrition transition: An empirical analysis comparing demand elasticities for foods in China and Russia," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 14(6), pages 1008-1022.
    33. Ken-ichi Mizobuchi & Hisashi Tanizaki, 2014. "On estimation of almost ideal demand system using moving blocks bootstrap and pairs bootstrap methods," Empirical Economics, Springer, vol. 47(4), pages 1221-1250, December.
    34. Cattaneo, Andrea & Federighi, Giovanni & Vaz, Sara, 2021. "The environmental impact of reducing food loss and waste: A critical assessment," Food Policy, Elsevier, vol. 98(C).
    35. Ansink, Erik & Wijk, Louise & Zuidmeer, Frederiek, 2022. "No clue about bioplastics," Ecological Economics, Elsevier, vol. 191(C).
    36. Perry, Chris, 2014. "Water footprints: Path to enlightenment, or false trail?," Agricultural Water Management, Elsevier, vol. 134(C), pages 119-125.
    37. Lohmann, Paul M. & Gsottbauer, Elisabeth & Doherty, Anya & Kontoleon, Andreas, 2022. "Do carbon footprint labels promote climatarian diets? Evidence from a large-scale field experiment," Journal of Environmental Economics and Management, Elsevier, vol. 114(C).
    38. Halkos, George & Matsiori, Steriani, 2014. "Exploring social attitude and willingness to pay for water resources conservation," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 49(C), pages 54-62.
    39. Hagmann, Désirée & Siegrist, Michael & Hartmann, Christina, 2018. "Taxes, labels, or nudges? Public acceptance of various interventions designed to reduce sugar intake," Food Policy, Elsevier, vol. 79(C), pages 156-165.
    40. Richard Green & Julian M. Alston, 1990. "Elasticities in AIDS Models," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 72(2), pages 442-445.
    41. Adolfo Carballo-Penela & Ingrid Mateo-Mantecón & Juan Luis Dom�nech & Pablo Coto-Millán, 2012. "From the motorways of the sea to the green corridors' carbon footprint: the case of a port in Spain," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 55(6), pages 765-782, September.
    42. López, Luis-Antonio & Tobarra, Maria-Angeles & Cadarso, Maria-Ángeles & Gómez, Nuria & Cazcarro, Ignacio, 2022. "Eating local and in-season fruits and vegetables: Carbon-water-employment trade-offs and synergies," Ecological Economics, Elsevier, vol. 192(C).
    43. Amore, Mario Daniele & Bennedsen, Morten & Larsen, Birthe & Rosenbaum, Philip, 2019. "CEO education and corporate environmental footprint," Journal of Environmental Economics and Management, Elsevier, vol. 94(C), pages 254-273.
    44. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-326, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gonçalves, Judite & Pereira dos Santos, João, 2020. "Brown sugar, how come you taste so good? The impact of a soda tax on prices and consumption," Social Science & Medicine, Elsevier, vol. 264(C).
    2. Zhen, Chen & Chen, Yu & Lin, Biing-Hwan & Karns, Shawn & Mancino, Lisa & Ver Ploeg, Michele, 2021. "Do Obese and Nonobese Consumers Respond Differently to Price Changes? Implications of Preference Heterogeneity for Using Food Taxes and Subsidies to Reduce Obesity," MPRA Paper 112697, University Library of Munich, Germany.
    3. Roche, Maxime, 2025. "Can differentiated value-added tax rates promote healthier diets? The case of Costa Rica," Food Policy, Elsevier, vol. 131(C).
    4. Pourya Valizadeh & Shu Wen Ng, 2021. "Would A National Sugar‐Sweetened Beverage Tax in the United States Be Well Targeted?," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(3), pages 961-986, May.
    5. Asche, Frank & Guttormsen, Atle G. & Kristofersson, Dadi & Roheim, Cathy A., 2005. "Import Demand Estimation and the Generalized Composite Commodity Theorem," 2005 Annual meeting, July 24-27, Providence, RI 19432, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Judite Gonçalves & Roxanne Merenda & João Pereira dos Santos, 2024. "Not so sweet: impacts of a soda tax on producers," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 31(5), pages 1388-1412, October.
    7. Wen S. Chern & Kimiko Ishibashi & Kiyoshi Taniguchi & Yuki Tokoyama, 2002. "Analysis of Food Consumption Behavior by Japanese Households," Working Papers 02-06, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
    8. Zhai, Tianchang & Li, Lei & Wang, Jingjing & Si, Wei, 2022. "Will the consumption tax on sugar-sweetened beverages help promote healthy beverage consumption? Evidence from urban China," China Economic Review, Elsevier, vol. 73(C).
    9. Taniguchi, Kiyoshi & Chern, Wen S., 2000. "Income Elasticity Of Rice Demand In Japan And Its Implications: Cross-Sectional Data Analysis," 2000 Annual meeting, July 30-August 2, Tampa, FL 21755, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    10. Schaper, Julian & Franks, Max & Koch, Nicolas & Plinke, Charlotte & Sureth, Michael, 2025. "On the emission and distributional effects of a CO2eq-tax on agricultural goods—The case of Germany," Food Policy, Elsevier, vol. 130(C).
    11. Pereda, Paula Carvalho & Moz-Christofoletti, Maria Alice & Duran, Ana Clara & Louzada, Maria Laura da Costa & Ng, Shu Wen, 2024. "Equity-Driven fiscal Policies: Taxing Ultra-Processed products and subsidizing minimally processed foods," Food Policy, Elsevier, vol. 126(C).
    12. Soregaroli, Claudio & Ricci, Elena Claire & Stranieri, Stefanella & Nayga, Rodolfo M. & Capri, Ettore & Castellari, Elena, 2021. "Carbon footprint information, prices, and restaurant wine choices by customers: A natural field experiment," Ecological Economics, Elsevier, vol. 186(C).
    13. Anikó Bíró, 2021. "The impact of sweet food tax on producers and household spending—Evidence from Hungary," Agricultural Economics, International Association of Agricultural Economists, vol. 52(4), pages 545-559, July.
    14. Goncalves, Judite & Merenda, Roxanne & Pereira dos Santos, João, 2023. "Not So Sweet: Impacts of a Soda Tax on Producers," IZA Discussion Papers 15968, Institute of Labor Economics (IZA).
    15. Diakité, Zakary, 2023. "Estimating Demand for Lamb, Beef, Pork, and Poultry in Canada," MPRA Paper 120115, University Library of Munich, Germany.
    16. Di Cosmo, Valeria & Tiezzi, Silvia, 2023. "Let them Eat Cake? The Net Consumer Welfare Impact of Sin Taxes," MPRA Paper 116214, University Library of Munich, Germany.
    17. Siegerink, Veerle E. & Delnoij, Joyce & Alpizar, Francisco, 2024. "Public preferences for meat tax attributes in The Netherlands: A discrete choice experiment," Food Policy, Elsevier, vol. 128(C).
    18. Tiboldo, Giulia & Boehm, Rebecca & Shah, Farhed & Moro, Daniele & Castellari, Elena, 2022. "Taxing the heat out of the U.S. food system," Food Policy, Elsevier, vol. 110(C).
    19. Pierre Dubois & Rachel Griffith & Martin O'Connell, 2020. "How Well Targeted Are Soda Taxes?," American Economic Review, American Economic Association, vol. 110(11), pages 3661-3704, November.
    20. Irz, Xavier & Mazzocchi, Mario & Réquillart, Vincent & Soler, Louis-Georges, 2015. "Research in Food Economics: past trends and new challenges," Revue d'Etudes en Agriculture et Environnement, Editions NecPlus, vol. 96(01), pages 187-237, March.

    More about this item

    Keywords

    Fiscal food policies; Food consumption; Diets; Nutrients; Price elasticities of footprints; Carbon footprint; Water footprint; Food loss and waste;
    All these keywords.

    JEL classification:

    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecolec:v:233:y:2025:i:c:s0921800925000795. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ecolecon .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.