IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v11y2019i18p4834-d264115.html
   My bibliography  Save this article

A Tax Coming from the IPCC Carbon Prices Cannot Change Consumption: Evidence from an Experiment

Author

Listed:
  • Maïmouna Yokessa

    () (UMR Économie Publique, Agroparistech, Université Paris-Saclay, 16 rue Claude Bernard, 75005 Paris, France)

  • Stéphan Marette

    () (UMR Économie Publique, INRA, Université Paris-Saclay, 16 rue Claude Bernard, 75005 Paris, France)

Abstract

This article compares a socially-optimal tax coming from a model integrating consumers’ preferences for various milks, with a tax directly computed from carbon emissions of milks with carbon prices given by the International Panel for Climate Change (IPCC). Regarding consumers’ preferences, we conducted an experiment in France for finding consumers’ willingness-to-pay (WTP) for different bottles coming from either cow’s milk or soy milk, under a regular or an organic process of production. This experiment shows higher WTPs for organic bottles than for regular bottles, and higher WTPs for soy milk than for cow’s milk. These WTPs were introduced into a model estimating the effects of regulatory instruments. From this model using WTPs, it was shown that, for milk coming from cows and soy, a tax on regular bottles and a subsidy on organic bottles maximized the consumers’ welfare. This tax on regular bottles was stronger than the tax that was alternatively estimated with the emissions and IPCC carbon prices. Indeed, a tax based on the IPCC carbon prices seemed too weak for efficiently changing the consumption towards sustainable products.

Suggested Citation

  • Maïmouna Yokessa & Stéphan Marette, 2019. "A Tax Coming from the IPCC Carbon Prices Cannot Change Consumption: Evidence from an Experiment," Sustainability, MDPI, Open Access Journal, vol. 11(18), pages 1-20, September.
  • Handle: RePEc:gam:jsusta:v:11:y:2019:i:18:p:4834-:d:264115
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/11/18/4834/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2071-1050/11/18/4834/
    Download Restriction: no

    More about this item

    Keywords

    consumers; lab experiment; organic premium; environmental premium; milk demand; green tax;

    JEL classification:

    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics
    • Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:11:y:2019:i:18:p:4834-:d:264115. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (XML Conversion Team). General contact details of provider: https://www.mdpi.com/ .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.