Fig. 5: Distribution of welfare costs across all EU27 households. | Nature Food

Fig. 5: Distribution of welfare costs across all EU27 households.

From: Environmental impacts from European food consumption can be reduced with carbon pricing or a value-added tax reform

Fig. 5: Distribution of welfare costs across all EU27 households.

Welfare costs resulting from the removal of VAT reductions for meat products (VAT reform) and a GHG emission price of €51.63 per tCO2e on all food products. Household-specific welfare costs are measured by the cost-of-living index (in euros, €) based on the national household survey data. Vertical lines represent the average change in the absolute cost of living (solid line) and the average change in tax income per household (dashed line), comprising the change in VAT income (for both policies) and the additional income from GHG emission pricing (for the GHG emission price policy only).

Source data

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