The Economic and Welfare Effects of Food Waste Reduction on a Food-Production-Driven Rural Region

Food waste is economically and ecologically unsustainable; the benefits of food reduction are indisputable. Yet knowledge economic trade-offs knock-on effects such deficient. This study examines in a rural region that nationally important producer agricultural products Finland. We built detailed social accounting matrix to trace transactions among agents. Five different simulations were run by applying computable general equilibrium model. In simulations, households services halved their waste. The results indicated worthwhile terms regional investments gross domestic product at market prices. However, induced welfare redistribution. value added agriculture industries decreased, albeit simulated compensations alleviated effects. long run, falling wages factor incomes entail closedowns and, finally, decrease local production. aspect worth considering policy planning under principle just transition European Green Deal.