Publications Agriculture and food

Does more sustainable food increase consumer budgets?

14 October 2021 - Climate Brief - By : Lucile ROGISSART / Valentin BELLASSEN / Claudine FOUCHEROT

Consuming less animal products and wasting less lighten the budget, but increasing consumption of organic products adds to it. In total, does adopting a sustainable diet increase or decrease consumer spending?

 

Report available in French only

 

While some studies give a clear-cut answer to this question, it actually varies according to at least three factors:

  • The ambition of the sustainable diet: the level of substitution between animal and plant proteins, the share of sustainably produced products (which is simplified to organic), and the level of waste reduction;
  • The economic conditions, in particular the price of organic products compared to conventional products;
  • The initial base of consumers and the prices at which they buy their products, which are strongly correlated with income.

 

I4CE has developed a calculator to measure the effects of each of these factors on the household food budget. Depending on the level of these parameters, the transition to a more sustainable diet can range from a 30% gain to an additional 67% of the consumer’s initial food budget. People with the lowest incomes have the highest potential additional costs.

 

At current prices, regardless of reductions in animal products and waste, consuming mostly organic food is more expensive, especially for the poorest households. The price premium for organic over conventional would have to fall from 65% today to 10% for all households to be able to adopt a less meaty 100% organic diet without increasing their budget.

 

If a high consumption of organic products is targeted, public policies must therefore manage the tension between remunerative prices for sustainable farming practices and an increase in food expenditure acceptable to households.

Click on this button to see the graphic

Does more sustainable food increase consumer budgets? Download
I4CE Contacts
Lucile ROGISSART
Lucile ROGISSART
Research Fellow – Financing the agricultural transition, Food systems Email
To learn more
  • 10/18/2024 Foreword of the week
    The climate transition of the food system in France and the role of EU funding

    The European Commission is due to deliver a Vision for Agriculture and Food, within the first 100 days of its new mandate. Feeding into this work, the Strategic Dialogue on the Future of Agriculture (SDFA) published its report “A shared prospect for farming and food in Europe” in September. The spending under the Common Agriculture Policy (CAP) and its alignment with the climate goals agreed at the EU level will be central to the next steps.  

  • 10/17/2024
    Estimation of Public Spending Related to Agricultural Crises in France Between 2013 and 2022

    Putting Agricultural Risk Management on the Agenda 

    In recent years agriculture has been hit by numerous crisis in France: adverse climatic events (primarily droughts, floods, and frost) and health crisis (notably avian flu), directly impacting agricultural production. Broader crisis, such as COVID-19 pandemic and the Russia’s invasion of Ukraine, have also indirectly but significantly affected the agricultural sector. Climate change, the ongoing Ukraine conflict, and overall geopolitical tensions suggest that these crisis and their impacts will become a lasting pattern in the future. These are crucial factors to consider when defining and strengthening food sovereignty. 

  • 10/09/2024
    Public spending in the French food system: which contributions to the ecological transition?

    La transition écologique du système alimentaire pose de nombreuses et épineuses questions de financement : combien ça coûte ? qui doit payer ? les financements existants y contribuent-ils ? C’est à cette dernière question que ce rapport apporte des éléments de réponse. Dans ce rapport, nous réalisons un recensement aussi exhaustif que possible des soutiens publics au système alimentaire français en 2018, 2021 et 2024. Nous analysons la contribution théorique de ces financements à la définition de la transition écologique des pouvoirs publics.

See all publications
Press contact Amélie FRITZ Head of Communication and press relations Email
Subscribe to our mailing list :
I register !
Subscribe to our newsletter
Once a week, receive all the information on climate economics
I register !
Fermer