How you can save $2.00 of externalities when you buy a loaf of bread

A growing number of people purchase bread from neighbourhood bakeries who use locally-sourced organic grains. We do it because we love the taste and for sustainability reasons. Based on some preliminary analysis I found that each loaf purchased represents about $2.03 per loaf in terms of social and ecological benefits!*

First, choosing bread with organically grown grain can improve externalities by 20 cents per loaf, which includes 6 cents for avoided costs related to using pesticides (e.g., effects on human health, related clean-up costs, environmental damage), 7 cents for avoided costs due to GHG emissions associated with creating, transporting and applying off-farm fertilizers, and about 7 cents thanks to positive externalities from carbon sequestration (from using practices like no-till agriculture). 

Second, choosing a locally-owned and sourced bakery creates about $1.66 per loaf in terms of positive externalities for the local economy. This includes about 3 cents per loaf for avoiding GHG expense for transporting grains and another $1.62 for hiring local suppliers, accountants, lawyers, subcontracting, marketing and so on (vs. sending money to have these services performed in a faraway headquarters). 

Third, about 18 cents of positive externalities are created if even 10% of the staff had faced multiple barriers to employment (e.g., previously on social assistance). This does not include benefits of paying a living wage, of job satisfaction working in a local artisanal vs industrial bakery, of nutritional advantages associated with sourdough breads, and so on. It also does not measure possible energy efficiencies of baking bread at different scales. 

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* Note: Figures are based on a loaf that is 675gram (1.5 lb) and in Canadian dollars.