Economics of household food waste

Abstract

Food waste has drawn increasing public attention, and the high levels of estimated waste are largely considered to be a failure of our current food system. Recently, economists have begun to weigh in, showing food waste can emerge as the result of a complex equilibrium affected by consumers' preferences for convenience; expectations about future food prices and availability; food safety concerns; producers' costs of holding inventory, transportation, and storage; government regulation; and technology. If food waste is a form of inefficiency, there are either strong economic motivations to reduce waste, or unmeasured costs or preferences affecting waste decisions. If consumers have behavioral biases, suffer from information asymmetries, or do not pay the full cost of their waste, there may be a role for government intervention to reduce waste, but most empirical models in the literature have not articulated or quantified the extent of the deadweight loss from the market failures in relation to food waste. In some cases, waste reduction efforts could harm producers if overall demand for food is reduced or harm consumers if overconsumption is encouraged, quality or safety degrades, or supply disruptions occur. Technological innovations, which lower the cost of storage or extend shelf life have the potential to improve both consumer and producer welfare.

The impact of COVID-19 pandemic on food waste behaviour of young people

“…After this first stage, there were premises to reduce food waste: the diminished income in many families, due to lockdown unemployment (both temporary and permanent); certain foods recorded a raise in prices; frequent family cooking, due to more time spent at home and restaurants being closed. The net effect of the pandemic on food waste will depend on its longevity, on the impact on the global economy, on the agri-food supply chain and on households ( Lusk and Ellison, 2020 ), on measures taken by local authorities, regional, national and global pandemic management.…”

Responsible consumption: addressing individual food waste behavior

“…Food waste emerges, in part, from consumers' daily behaviors, such as buying more food than required, preparing too much at meal times and not re-using leftovers (Boulet et al , 2021; Parizeau et al , 2015). Nonetheless, far fewer studies have examined the issue from the individual perspective, and fewer have examined individual behavior using an economic framework of decision-making (see for example, Lusk and Ellison, 2017; Katare et al , 2017; Lusk and Ellison, 2020).…”

A review of packaging‐related studies in the context of household food waste: Drivers, solutions and avenues for future research

“…3,43 Fighting FW contributes to social and economic gains. 2,[44][45][46] Wasted food is wasted money. In developed countries, the annual cost of FW for a family of four can exceed a thousand dollars.…”