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Demand elasticities for fresh meat and welfare effects of meat taxes in Germany

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  • Roosen, Jutta
  • Staudigel, Matthias
  • Rahbauer, Sebastian

Abstract

This paper assesses the effect of different meat tax designs in Germany including increasing the value-added tax as well as two climate-gas-emission-sensitive excise tax scenarios. For the simulation study, we first estimate price and expenditure elasticities for fresh meat for different household types using data from the GfK ConsumerScan FreshFood panel over the period 2012–14. The estimated elasticities are used to derive budget and welfare effects for the tax scenarios. A general rise in the value-added tax from 7% to 19% leads to a welfare loss of 0.83 euros per household per month. Disentangling the effect by household group according to income and age shows that low-income and older households experience a higher welfare loss and bear a larger tax burden relative to their income compared to low-income and younger households, respectively. Comparing the different taxation scenarios highlights the comparative efficiency of excise taxes and the importance to consider effects on older households.

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  • Roosen, Jutta & Staudigel, Matthias & Rahbauer, Sebastian, 2022. "Demand elasticities for fresh meat and welfare effects of meat taxes in Germany," Food Policy, Elsevier, vol. 106(C).
    • Handle: RePEc:eee:jfpoli:v:106:y:2022:i:c:s0306919221001731
    DOI: 10.1016/j.foodpol.2021.102194
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    5. Kimsanova, Barchynai & Sanaev, Golib & Herzfeld, Thomas, 2022. "Dynamics of food consumption during political instability: evidence from Kyrgyzstan," 96th Annual Conference, April 4-6, 2022, K U Leuven, Belgium 321213, Agricultural Economics Society - AES.
    6. Christopher Swann & Mary Kelly, 2023. "Disruption in the meat industry: new technologies in nonmeat substitutes," Business Economics, Palgrave Macmillan;National Association for Business Economics, vol. 58(1), pages 42-60, January.
    7. Wimmer, Stefan & Stetter, Christian & Schmitt, Jonas & Ringer, Robert, 2022. "Farm-level responses to weather trends," 96th Annual Conference, April 4-6, 2022, K U Leuven, Belgium 321221, Agricultural Economics Society - AES.
    8. Ana Clara Borrego & Rute Abreu & Francisco Alegria Carreira & Filipe Caetano & Ana Lúcia Vasconcelos, 2023. "Environmental Taxation on the Agri-Food Sector and the Farm to Fork Strategy: The Portuguese Case," Sustainability, MDPI, vol. 15(16), pages 1-18, August.

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