True price for consumers: Palm oil
Found in most products and often added to foods you eat daily, but it goes unnoticed by most consumers.
What is the true costs of the palm oil? It may surprise you which products have palm oil as an ingredient, think about peanut butter and ice cream.
Palm oil: TEEB Indonesia
There are many environmental and social hidden costs from Palm Oil production in Indonesia. Two of the most significant externalities in palm oil production are land use change (environmental) and underpayment (social).
- Location: Indonesia
- Year: 2017
- Description: Using True Price and Trucost methodologies and data provided by The Economics of Ecosystems and Biodiversity (TEEB), environmental externalities under different land use types and using alternative farm management were calculated. Social externalities were assessed to be comparable to environmental ones. Finally, it was demonstrated that internalizing part of these externalities would still lead to a profitable business model.
