Abstract

Livestock cause around 10% of total greenhouse gas (GHG) emissions in the European Union. Despite the large quantities, no economic policy is in place to reduce emissions from the sector. In this paper, we introduce consumption taxes on animal products in the European Union to reduce GHG emissions. Impacts are simulated using the CAPRI model, which was created to analyze the impacts of agricultural policy reforms within the EU. Tax levels of 16, 60 and 290 Euro per ton of GHG emissions are used in the estimations.Our results show that consumption taxes have small mitigation effects, up to 4.9% of total agricultural emissions from the EU-27, mainly due to inelastic demand. The main source of reductions is beef and France is the country where most reductions would take place, given high levels of production and consumption in the country, combined with a large demand elasticity of beef.

Keywords

Climate change; agricultural greenhouse gas emissions; emission leakage; environmental taxes; mathematical modelling

Published in

Climate Change Economics
2018, Volume: 9, number: 4, article number: 1850009
Publisher: WORLD SCIENTIFIC PUBL CO PTE LTD

SLU Authors

• Jansson, Torbjörn

  • Department of Economics, Swedish University of Agricultural Sciences
    

• Säll, Sarah

  • Department of Economics, Swedish University of Agricultural Sciences
    

Sustainable Development Goals

Take urgent action to combat climate change and its impacts
End hunger, achieve food security and improved nutrition and promote sustainable agriculture
Ensure sustainable consumption and production patterns


UKÄ Subject classification

Economics


Publication identifier

DOI: https://doi.org/10.1142/S2010007818500094

Permanent link to this page (URI)

https://res.slu.se/id/publ/97558