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. Showing how taxation can be a tool towards a more sustainable, fairer and more transparent food system is the topic of this study, which was launched yesterdy at the first edition of the Best Economy Forum.

In its study, Soil & More Impacts 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 PPPs. According to Inka Sachse, researcher at Soil and More Impacts, the cultural and economic context of these taxes are crucial. She stated: “Only a combination of policy, taxation, communication and providing realistic alternatives is effective, whereas the taxation might be of lesser importance”.