Levering waste taxes to increase surplus food redistribution at supermarkets: Gains and scenarios in Italian municipalities.

ABSTRACT

The redistribution of unsold food products to charities is often considered a promising strategy to reduce food waste at supermarkets while producing social advantages. The Italian law against food waste (so-called "Gadda law") approved in 2016 allows municipalities to reduce the waste tax due by retail stores, proportionally to the certified amount of surplus food they donate. This option may act as an economic incentive for retailers to activate food waste redistribution initiatives, thus supporting diffusion at a larger scale. This study uses a simple economic model to assess the gains and losses of the municipality and the retailers under different scenarios of the application of this tax reduction. The model is tested on a number of Italian municipalities with different features, showing that under the appropriate conditions a decrease in the waste tax for stores activating food redistribution can lead to a win-win economic condition for all the actors involved.