Monetizing Food Waste and Loss Externalities in National Food Supply Chains: A Systems Analytics Framework

Reducing food loss and waste (FLW) is a global priority under UN SDG 12.3, yet Taiwan has lacked stage-specific FLW data and systematic valuation of its environmental and economic implications. This study addresses these gaps by integrating localized FLW estimates from the APEC-FLOWS database with an enhanced analytical framework—the Environmentally Extended Input–Output Valuation (EEIO-V) model. The EEIO-V extends conventional input–output analysis by monetizing multiple environmental burdens, including greenhouse gases, air pollutants, wastewater, and solid waste, thereby linking FLW reduction to tangible economic benefits and policy design. The simulations reveal substantial differences in environmental cost reductions across supply chain stages, with downstream interventions delivering the largest benefits, particularly in reducing air pollution and greenhouse gases. By contrast, upstream measures contribute relatively smaller improvements. These findings highlight the novelty of EEIO-V in bridging environmental valuation with system-level FLW analysis, and they provide actionable insights for designing cost-effective, stage-specific strategies that prioritize downstream interventions to advance Taiwan’s sustainability and policy goals.