For mac download Farming 202012/15/2023 ![]() ![]() In order to close the gap between the current market prices and the true costs of foodstuff, GHG emissions from agriculture have to be quantified and monetized. These external costs are not yet included in the market prices for food and, in the absence of current compensation payments, lead to significant market price distortions 3 and welfare losses for society as a whole 4, 5. Social and environmental costs from the emission of greenhouse gases (GHGs) are currently not considered in the cost structure of farmers or the subsequent food chain 1, 2, and are thus a burden on other market participants, future generations, and the natural environment. ![]() The large difference of relative external climate costs between food categories as well as the absolute external climate costs of the agricultural sector imply the urgency for policy measures that close the gap between current market prices and the true costs of food. Results show that external greenhouse gas costs are highest for conventional and organic animal-based products (2.41€/kg product 146% and 71% surcharge on producer price level), followed by conventional dairy products (0.24€/kg product 91% surcharge) and lowest for organic plant-based products (0.02€/kg product 6% surcharge). ![]() Using life-cycle assessment and meta-analytical approaches, we calculate the external climate costs of foodstuff. A method addressing this scientific gap is established in this paper and applied in the context of Germany. Available research assessing agricultural external costs lacks a differentiation between farming systems and food categories. Although the agricultural sector is globally a main emitter of greenhouse gases, thorough economic analysis of environmental and social externalities has not yet been conducted. ![]()
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