Calculating the true costs of protein sources by integrating environmental costs and market prices

Abstract

The food sector is responsible for a great part of the environmental impact of our society (for instance, according to the UN, about a third of all human-made greenhouse gas emissions are linked to this sector) and protein sources, as one of the main food groups, have a particularly significant impact on the environment. Understanding the environmental and economic impacts of dietary choices is crucial, especially proteins choices, a main food source. Market prices alone do not comprehensively represent the true costs for society. True Cost Accounting is a methodology that quantifies the comprehensive economic, environmental, and social costs. Calculating the hidden environmental costs of the different alternative proteins helps to inform the public about the environmental consequences of their dietary choices. Adjusted prices, which integrate market prices with hidden environmental costs of protein alternative sources, including both animal-based and plant-based options, were estimated. In determining the true cost of proteins, assigning monetary values to environmental impacts is essential. Calculating environmental costs and adjusting the price of proteins provide a more accurate reflection of their true cost by accounting for the environmental externalities associated with protein production. A life cycle approach was applied, considering both a conventional mass-based functional unit and a proposed protein-content-based functional unit, which integrates the source´s efficiency to deliver protein nutrient. In a mass-based calculation, beef and lamb production consistently demonstrate the highest adjusted costs, amounting to 33.72€ per kg of source, while plant-based protein sources typically exhibit lower adjusted costs, with an average of 12.31€ per kg of source. In between, seafood ranks fourth at 26.41€ per kg of source. However, when the calculation of the adjusted price is based on real protein content, seafood commands the highest value, reaching 179.97€ per kg of protein, whereas beef and lamb drop to the third position at 131.76€ per kg of protein, and plant-based options Increase to 116.32€ per kg of protein. In summary, our study emphasizes the significance of informed dietary choices that account for both environmental sustainability and economic factors, and the need to use proper methodologies for the quantitative accounting. Further research is necessary to include social dimensions in the study, given their current unmeasurability due to complexity and limited information.