Modeling price sensitivity in food consumption - a foundation for consumption taxes as a GHG mitigation policy

Abstract

In this paper we investigate the mitigation possibilities of climate impact weighted food taxes in Sweden.We include 52 food items in a demand system of elasticities, covering most food consumed by the Swedishpopulation. Tax levels are based on the Swedish Carbon tax and would lead to price increases up to SEK25 (close to EURO 2.5) per kilo product. The possible emission reductions would be just above 200 kilosof CO2e emissions per person and year which corresponds to a 10% decrease from Swedish foodconsumption. Most important for the reductions are beef, other meats and dairy products. Almost 90%of reductions are from animal products.

Keywords

weighted food taxes; climate impact; food consumption; Sweden; beef; meats; dairy products

Published in

Working Paper Series / Swedish University of Agricultural Sciences, Department of Economics
2020, number: 2020:01
Publisher: Swedish University of Agricultural Sciences, Department of Economics

SLU Authors

• Säll, Sarah

  • Department of Economics, Swedish University of Agricultural Sciences
    

• Moberg, Emma

  • Department of Energy and Technology, Swedish University of Agricultural Sciences
    

• Röös, Elin

  • Department of Energy and Technology, Swedish University of Agricultural Sciences
    

UKÄ Subject classification

Economics
Food Science
Climate Science

Permanent link to this page (URI)

https://res.slu.se/id/publ/105313