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Animal Welfare, Moral Consumers and the Optimal Regulation of Animal Food Production

Author

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  • Thomas Eichner
  • Marco Runkel

Abstract

Within a general equilibrium model, this paper identifies a novel animal welfare externality that occurs if the private animal friendliness in a market economy falls short of the social animal friendliness used by the social planner when determining the efficient allocation. The animal welfare externality causes an inefficiently high quantity and an inefficiently low quality of animal food. Correction of this market failure is attained by taxing animal food output and subsidizing animal food quality. With consumer and producer heterogeneity, regulation is the same but sector-specific, with a more intense regulation in the sector with the worse living conditions of animals.

Suggested Citation

  • Thomas Eichner & Marco Runkel, 2022. "Animal Welfare, Moral Consumers and the Optimal Regulation of Animal Food Production," CESifo Working Paper Series 10149, CESifo.
    • Handle: RePEc:ces:ceswps:_10149
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    File URL: https://www.cesifo.org/DocDL/cesifo1_wp10149.pdf
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    References listed on IDEAS

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    1. Oscar Venter & Eric W. Sanderson & Ainhoa Magrach & James R. Allan & Jutta Beher & Kendall R. Jones & Hugh P. Possingham & William F. Laurance & Peter Wood & Balázs M. Fekete & Marc A. Levy & James E., 2016. "Sixteen years of change in the global terrestrial human footprint and implications for biodiversity conservation," Nature Communications, Nature, vol. 7(1), pages 1-11, November.
    2. Nicolas Treich, 2022. "The Dasgupta Review and the Problem of Anthropocentrism," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 83(4), pages 973-997, December.
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    Cited by:

    1. Espinosa, Romain & Treich, Nicolas, 2024. "Animal welfare as a public good," Ecological Economics, Elsevier, vol. 216(C).
    2. Treich, Nicolas & Espinosa, Romain, 2024. "The Animal-Welfare Levy," TSE Working Papers 24-1503, Toulouse School of Economics (TSE).

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    More about this item

    Keywords

    animal welfare; altruism; morality; non-anthropocentrism; meat tax; subsidy on animal food quality;
    All these keywords.

    JEL classification:

    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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