Does a Food Waste Tax Work? Evidence from Quasi-Experiments in South Korea

Abstract Globally, one-third of food is discarded, generating lifecycle greenhouse gas emissions comparable to those from road transport. Further, waste management is among the largest municipal budget items worldwide. Exploiting plausibly exogenous unit-based food waste tax expansions in South Korea, I find that the tax substantially reduces food waste by discouraging excessive grocery purchases. Households sustain food intake despite buying less, but at the cost of additional time spent on meal production. Nonpecuniary motivations appear central to the policy’s e!ectiveness, and the tax is likely welfare-improving because more e"cient food use not only reduces externalities but also offsets time costs.