True Cost and True Price Applied to Food: An Empirical Study with Swiss Residents

The current food system is becoming unstable increasingly which is contributing to major sustainability issues. Since the hidden costs associated with food production and consumption are not accounted for, the current economic value of food can be misleading. These hidden costs, known as externalities, encourage detrimental behaviors and create barriers to developing sustainable food systems. This thesis revolves around the comprehensive overview of the major externalities pertaining to food system in health, environmental and social sectors, along with the consumer studies regarding the true pricing implementation based on their reception also with the outline with the common perception of consumer about sustainable purchasing To support a transition to a sustainable food system, the true cost accounting for food (TCAF) can be used. This methodology can be applied to assess and measure true costs associated with the food system. However, this approach requires cooperation from governments, businesses, and consumers. As consumers play a crucial role, but many are unaware of these hidden costs, leading to unsustainable buying habits. To make TCAF effective, we need to understand how consumers perceive it and how it influences their choices. This understanding can help promote smarter, more sustainable food purchasing decisions. In this context, this study aims to evaluate how consumers in Switzerland perceive the true cost accounting and true price approaches. An online survey was conducted in Switzerland in June 2024. Linear regression was used to analyse the sample of 224 participants and to examine the predictors affecting their attitude towards TCAF. The results indicate that belief in TCAF methodology strongly influenced the positive attitudes towards TCAF. Belief in remediation of the externalities through true price and perceived green values related to true price, besides the sense of environmental protection also appeared as positive influencers of this attitude. Moreover, the regression revealed that participants with more positive attitudes towards TCAF give less importance to the affordability of food when compared to the externalities. The results can contribute by adding to the limited available literature on TCAF and true price. Stakeholders, policymakers and the food industry can use this information to support the shift of the current food system to a more sustainable one.