Launch of study “taxation as a tool towards true cost accounting”
The study analyses the six potential mechanisms of indirect taxation as a tool to show the true cost of food. The study shows that a tax on non-organic plant protection products (PPPs) and/or fertilizers is the most realistic way to account for the true cost of food. Such a tax may also discourage the use of environmentally unfriendly plant protection products.
The study also puts together factsheets about the impacts on the environment that stem from cultivating a hectare of organic potatoes or wheat in comparison to cultivating a hectare of conventional potatoes or wheat (page 19). The most striking result is that conventional potato cultivation in Germany costs €1298/hectare in ground water pollution alone. For organic potato production the cost on ground water pollution decreases to €0.4/hectare. While these numbers are the result of mathematical models, they reveal an interesting trend.
IFOAM EU launched the study at the first edition of the Best Economy Forum. This event is an international discussion platform for companies that successfully implement sustainability strategies. Read more about the study in the IFOAM EU press release of 10 April.