A proposal to correct external effects in the coffee market: a tax on regular coffee and tea to subsidise the fair trade coffee
AbstractThis paper justifies the need to introduce a tax on regular coffee drinkers in the UK to subsidise the fair trade/organic coffee production. This policy will allow to take full account of the negative external effect of regular coffee production while internalising the positive effect of fair trade initiatives. Designing such a policy is possible and the benefits of it can be calculated. This paper shows how. Propuesta para corregir las externalidades en el mercado de cafÃ©: un impuesto sobre el te y el cafÃ© regular y una subvenciÃ³n sobre el cafÃ© de Comercio Justo. El presente artÃculo justifica la necesidad de introducir un impuesto sobre los consumidores de cafÃ© y tÃ© en el Reino Unido para subvencionar la producciÃ³n de cafÃ© orgÃ¡nico y de Comercio Justo. La propuesta permite corregir los efectos externos negativos que se generan en el proceso de producciÃ³n del cafÃ© a la vez que sirve para internalizar las externalidades o efectos positivos de los cultivos de cafÃ© de Comercio Justo. El trabajo muestra que el diseÃ±o de esta polÃtica es factible y que los beneficios resultantes de ponerla en prÃ¡ctica pueden ser debidamente calculados. Palabras clave: mercado cafÃ©, mercado justo
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Bibliographic InfoArticle provided by Spanish Association of Agricultural Economists in its journal Economia Agraria y Recursos Naturales.
Volume (Year): 06 (2006)
Issue (Month): 12 ()
coffee market; fair trade; International Relations/Trade; Q18; H23;
Find related papers by JEL classification:
- Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy
- H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Galarraga, Ibon & Markandya, Anil, 2004. "Economic techniques to estimate the demand for sustainable products: a case study for fair trade and organic coffee in the United Kingdom," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 4(07).
- Edoardo Marcucci, 1999. "Road Pricing: Old Beliefs, Present Awareness and Future Research Patterns," Working Papers 1999.4, Fondazione Eni Enrico Mattei.
- Ibon Galarraga & Anil Markandya, 2003. "The analysis of welfare effects of an environmental product tax: an application to the taxation of car tyres in Hungary," Fiscal Studies, Institute for Fiscal Studies, vol. 24(1), pages 97-114, March.
- Diamond, P. A. & McFadden, D. L., 1974. "Some uses of the expenditure function in public finance," Journal of Public Economics, Elsevier, vol. 3(1), pages 3-21, February.
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