Nutrition and Climate Policies in the European Union: Friends or Enemies?

The European Union (EU) Green Deal and its Farm to Fork Strategy are intended to promote sustainable food systems to achieve EU climate-neutrality by 2050. The Farm to Fork action plan also foresees the introduction of a harmonized mandatory front-of-pack nutrition labelling scheme in 2023. The EU countries have yet to reach agreement on the nutrition labelling scheme, which will also have environmental impacts. This article raises the question of whether at the European level, countries should seek agreements on both climate mitigation and nutrition policies (full agreement as in the case of the Green Deal) or should negotiate separate climate and nutrition policy agreements (as for the nutritional labelling). To address this question, this paper develops a game-theoretic model with multiple countries where each country implements a climate policy and a nutrition policy. We compare the consequences in terms of total emissions, the level of the nutrition policy and the welfare under different institutional arrangements of a non-cooperative equilibrium, full agreement, and three alternative agreements. Our results show in particular that full agreement always leads to the lowest total emissions at the expense of the level of nutrition policy in some cases. In an extension of our analysis, we show that agreements that include cooperation over nutrition policies do not necessarily imply formation of a larger coalition of signatory countries, even if a nutrition policy has positive or negative impacts on emissions.