The European Green Deal improves the sustainability of food systems but has uneven economic impacts on consumers and farmers

Abstract

The European Green Deal aims notably to achieve a fair, healthy, and environmentally friendly food system in the European Union. We develop a partial equilibrium economic model to assess the market and non-market impacts of the three main levers of the Green Deal targeting the food chain: reducing the use of chemical inputs in agriculture, decreasing post-harvest losses, and shifting toward healthier average diets containing lower quantities of animal-based products. Substantially improving the climate, biodiversity, and nutrition performance of the European food system requires jointly using the three levers. This allows a 20% reduction in greenhouse gas emissions of food consumption and a 40–50% decrease in biodiversity damage. Consumers win economically thanks to lower food expenditures. Livestock producers lose through quantity and price declines. Impacts on revenues of food/feed field crop producers are positive only when the increase in food consumption products outweighs the decrease in feed consumption.