Effects of an environmental tax on meat and diary consumption in Sweden

Abstract

This study evaluated the environmental impacts of introducing an environmental tax on meat consumption in Sweden. Three meat products (beef, pork and chicken), four dairy products (milk, fermented products, cream and cheese) and three pollutants generating environmental damage (greenhouse gases (GHG), nitrogen and phosphorus) were included in the analysis. The unit tax applied corresponded to between 6.1% and 24.3% of the respective price per kg product in 2009. Consumer response to the tax was calculated by econometric estimates of the almost ideal demand system (AIDS) for meat and dairy products, using per capita consumption data and prices. The results indicated relatively inelastic own price elasticities and high income elasticities for all meat products and slightly lower for dairy products. Simultaneous introduction of a tax on all seven products decreased emissions of GHG, nitrogen and phosphorus from the meat sector by up to 8%.

Keywords

Environmental meat and dairy tax; Environmental impacts; Sweden; Meat and dairy demand elasticities

Published in

Food Policy
2015, volume: 55, pages: 41-53

SLU Authors

• Säll, Sarah

  • Department of Economics, Swedish University of Agricultural Sciences
    

• Gren, Ing-Marie

  • Department of Economics, Swedish University of Agricultural Sciences
    

Global goals (SDG)

SDG2 Zero hunger

UKÄ Subject classification

Economics

Publication identifier

• DOI: https://doi.org/10.1016/j.foodpol.2015.05.008

Permanent link to this page (URI)

https://res.slu.se/id/publ/68660