How does local food affect the local economy, which has a cause to the environment? Not only helping the environment but it also benefits the economy. This is because the less transporting needed, a smaller amount of cash has to be used on food and it can be distributed to schools or buildings for that area. Local food also has a downside to some economies. By growing food in a farm, lots of water is needed to help them grow and that’ll cost money. When we use all that water, we’re taking more from the environment than that’s supposed to be taken.