IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v13y2021i16p9026-d613088.html
   My bibliography  Save this article

Climate Change Policies and the Carbon Tax Effect on Meat and Dairy Industries in Brazil

Author

Listed:
  • Augusto Mussi Alvim

    (Escola de Negócios, Pontifícia Universidade Católica do Rio Grande do Sul, Porto Alegre 90619-900, Brazil)

  • Eduardo Rodrigues Sanguinet

    (Instituto de Economía Agraria, Universidad Austral de Chile, Valdivia 509000, Chile)

Abstract

This study analyzes the impacts of reducing greenhouse gas (GHG) emissions on the meat and dairy industries. To achieve this goal, the Global Trade Analysis Project (GTAP) database was used in a Computable General Equilibrium (CGE) setting, which allows for the inclusion of carbon taxes and the definition of four alternative environmental policies scenarios using both Global Warming Potential (GWP) and Global Temperature Potential (GTP) as GHG emissions measures. All scenarios analyze the main effects of carbon-based tax economic instruments on the industry and national production, trade, and emissions, comparing the results for different measures of GHG, GWP, and GTP from the Greenhouse Gas Emissions Estimation System (SEEG) sectoral Brazilian emissions database. In contrast with other industries, relatively lower taxes on the meat and dairy industries seem to be the most adequate in terms of cost distribution in the Brazilian economic structure when only the GWP measure is considered. Urban activities and less-methane-intensive industries benefit from climate change policies designed using GWP-based rather than GTP-based carbon taxes. The article also highlights the importance of a gradual introduction of carbon taxes, allowing the most vulnerable industries a transition moment to adopt clean technologies and/or redirect economic activity to less-GHG-emitting segments.

Suggested Citation

  • Augusto Mussi Alvim & Eduardo Rodrigues Sanguinet, 2021. "Climate Change Policies and the Carbon Tax Effect on Meat and Dairy Industries in Brazil," Sustainability, MDPI, vol. 13(16), pages 1-20, August.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:16:p:9026-:d:613088
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/13/16/9026/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/13/16/9026/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Golnaz Mohebbi & Ali Bahadori-Jahromi & Marco Ferri & Anastasia Mylona, 2021. "The Role of Embodied Carbon Databases in the Accuracy of Life Cycle Assessment (LCA) Calculations for the Embodied Carbon of Buildings," Sustainability, MDPI, vol. 13(14), pages 1-22, July.
    2. Lucena, André F.P. & Clarke, Leon & Schaeffer, Roberto & Szklo, Alexandre & Rochedo, Pedro R.R. & Nogueira, Larissa P.P. & Daenzer, Kathryn & Gurgel, Angelo & Kitous, Alban & Kober, Tom, 2016. "Climate policy scenarios in Brazil: A multi-model comparison for energy," Energy Economics, Elsevier, vol. 56(C), pages 564-574.
    3. Chunyu Pan & Anil Kumar Shrestha & Guangyu Wang & John L. Innes & Kevin Xinwei Wang & Nuyun Li & Jinliang Li & Yeyun He & Chunguang Sheng & John-O. Niles, 2021. "A Linkage Framework for the China National Emission Trading System (CETS): Insight from Key Global Carbon Markets," Sustainability, MDPI, vol. 13(13), pages 1-15, July.
    4. Andrii Zabrodskyi & Egidijus Šarauskis & Savelii Kukharets & Antanas Juostas & Gediminas Vasiliauskas & Albinas Andriušis, 2021. "Analysis of the Impact of Soil Compaction on the Environment and Agricultural Economic Losses in Lithuania and Ukraine," Sustainability, MDPI, vol. 13(14), pages 1-13, July.
    5. Hertel, Thomas, 1997. "Global Trade Analysis: Modeling and applications," GTAP Books, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, number 7685, December.
    6. Sergio Margulis, 2004. "Causes of Deforestation of the Brazilian Amazon," World Bank Publications - Books, The World Bank Group, number 15060, December.
    7. Abdulmajid Bobokhonov & Jan Pokrivcak & Miroslava Rajcaniova, 2017. "The impact of agricultural and trade policies on price transmission: The case of Tajikistan and Uzbekistan," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 26(6), pages 677-692, August.
    8. Alessandro Antimiani & Luca Salvatici & Ilaria Fusacchia, 2018. "GTAP-VA: An Integrated Tool for Global Value Chain Analysis," Journal of Global Economic Analysis, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, vol. 3(2), pages 69-105, December.
    9. Brewer, Thomas L., 2019. "Black carbon emissions and regulatory policies in transportation," Energy Policy, Elsevier, vol. 129(C), pages 1047-1055.
    10. Joaquim Bento de Souza Ferreira Filho & Luis Ribera & Mark Horridge, 2015. "Deforestation Control and Agricultural Supply in Brazil," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 97(2), pages 589-601.
    11. Fraser, Iain & Waschik, Robert, 2013. "The Double Dividend hypothesis in a CGE model: Specific factors and the carbon base," Energy Economics, Elsevier, vol. 39(C), pages 283-295.
    12. Miriam Frey, 2017. "Assessing the impact of a carbon tax in Ukraine," Climate Policy, Taylor & Francis Journals, vol. 17(3), pages 378-396, April.
    13. André Pastori D’Aurea & Abmael da Silva Cardoso & Yuri Santa Rosa Guimarães & Lauriston Bertelli Fernandes & Luis Eduardo Ferreira & Ricardo Andrade Reis, 2021. "Mitigating Greenhouse Gas Emissions from Beef Cattle Production in Brazil through Animal Management," Sustainability, MDPI, vol. 13(13), pages 1-9, June.
    14. Nong, Duy, 2020. "Development of the electricity-environmental policy CGE model (GTAP-E-PowerS): A case of the carbon tax in South Africa," Energy Policy, Elsevier, vol. 140(C).
    15. Gurgel, Angelo C. & Paltsev, Sergey & Breviglieri, Gustavo Velloso, 2019. "The impacts of the Brazilian NDC and their contribution to the Paris agreement on climate change," Environment and Development Economics, Cambridge University Press, vol. 24(4), pages 395-412, August.
    16. Boucher, O. & Reddy, M.S., 2008. "Climate trade-off between black carbon and carbon dioxide emissions," Energy Policy, Elsevier, vol. 36(1), pages 193-200, January.
    17. Luan Santos & Rafael Garaffa & André F. P. Lucena & Alexandre Szklo, 2018. "Impacts of Carbon Pricing on Brazilian Industry: Domestic Vulnerability and International Trade Exposure," Sustainability, MDPI, vol. 10(7), pages 1-19, July.
    18. Astrida Miceikienė & Kristina Gesevičienė & Daiva Rimkuvienė, 2021. "Assessment of the Dependence of GHG Emissions on the Support and Taxes in the EU Countries," Sustainability, MDPI, vol. 13(14), pages 1-15, July.
    19. Terciane Sabadini Carvalho & Edson Paulo Domingues, 2016. "Controlling Deforestation In The Brazilian Amazon: Regional Economic Impacts And Land-Use Change," Anais do XLIII Encontro Nacional de Economia [Proceedings of the 43rd Brazilian Economics Meeting] 192, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    20. Tol, Richard S.J., 2019. "A social cost of carbon for (almost) every country," Energy Economics, Elsevier, vol. 83(C), pages 555-566.
    21. Munjed A. Maraqa & Francisco D. B. Albuquerque & Mohammed H. Alzard & Rezaul Chowdhury & Lina A. Kamareddine & Jamal El Zarif, 2021. "GHG Emission Reduction Opportunities for Road Projects in the Emirate of Abu Dhabi: A Scenario Approach," Sustainability, MDPI, vol. 13(13), pages 1-22, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Eduardo Rodrigues Sanguinet & Augusto Mussi Alvim, 2024. "The effects of the EU-MERCOSUR agreement on bilateral trade: the role of Brexit," International Economics and Economic Policy, Springer, vol. 21(1), pages 227-249, February.
    2. Kengo Suzuki & Ryohei Ishiwata, 2022. "Impact of a Carbon Tax on Energy Transition in a Deregulated Market: A Game-Based Experimental Approach," Sustainability, MDPI, vol. 14(19), pages 1-19, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. William Wills & Emilio Lebre La Rovere & Carolina Grottera & Giovanna Ferrazzo Naspolini & Gaëlle Le Treut & F. Ghersi & Julien Lefèvre & Carolina Burle Schmidt Dubeux, 2022. "Economic and social effectiveness of carbon pricing schemes to meet Brazilian NDC targets," Post-Print hal-03500923, HAL.
    2. Alvim, Augusto & Sanguinet, Eduardo, 2020. "Paris Agreement on Climate Change and the Possible Impacts on Brazilian Meat and Dairy Sectors," Conference papers 333147, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    3. Jia, Zhijie & Lin, Boqiang, 2020. "Rethinking the choice of carbon tax and carbon trading in China," Technological Forecasting and Social Change, Elsevier, vol. 159(C).
    4. Ilaria Fusacchia & Jean Balié & Luca Salvatici, 2022. "The AfCFTA impact on agricultural and food trade: a value added perspective," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 49(1), pages 237-284.
    5. Ferreira, Marcelo D P & Feres, Jose, 2018. "The Role of Climate Risk on Land Allocation in Brazilian Amazon," 2018 Annual Meeting, August 5-7, Washington, D.C. 274436, Agricultural and Applied Economics Association.
    6. Francisco, Adriana Xavier & Gurgel, Angelo, 2020. "Costs of Reducing Deforestation In Brazil: a General Equilibrium Approach," Conference papers 333161, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    7. Felipe Figueiredo Silva & Lilyan E. Fulginiti & Richard K. Perrin & Marcelo Jose Braga, 2022. "The increasing opportunity cost of sequestering CO2 in the Brazilian Amazon forest," Empirical Economics, Springer, vol. 62(2), pages 439-460, February.
    8. Glyn Wittwer & Mark Horridge, 2018. "Prefectural Representation of the Regions of China in a Bottom-up CGE Model: SinoTERM365," Journal of Global Economic Analysis, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, vol. 3(2), pages 178-213, December.
    9. Octaviano, Claudia & Paltsev, Sergey & Gurgel, Angelo Costa, 2016. "Climate change policy in Brazil and Mexico: Results from the MIT EPPA model," Energy Economics, Elsevier, vol. 56(C), pages 600-614.
    10. Mardones, Cristian & Mena, Camilo, 2020. "Effects of the internalization of the social cost of global and local air pollutants in Chile," Energy Policy, Elsevier, vol. 147(C).
    11. Silva, F.D.F. & Fulginiti, L. & Perrin, R., 2018. "Agricultural productivity and forest preservation in the Brazilian Amazon," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277167, International Association of Agricultural Economists.
    12. Miguel Carriquiry & Amani Elobeid & Jerome Dumortier & Ryan Goodrich, 2020. "Incorporating Sub‐National Brazilian Agricultural Production and Land‐Use into U.S. Biofuel Policy Evaluation," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 42(3), pages 497-523, September.
    13. Ilaria Fusacchia & Alessandro Antimiani & Luca Salvatici, 2021. "An assessment of import tariff costs for Italian exporting firms," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 38(1), pages 31-56, April.
    14. Ilaria Fusacchia & Luca Salvatici & L Alan Winters, 2022. "The consequences of the Trade and Cooperation Agreement for the UK’s international trade," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 38(1), pages 27-49.
    15. Simon J.Evenett & Mia Mikic & Ravi Ratnayake (ed.), 2011. "Trade-led growth: A sound strategy for Asia," ARTNeT Books and Research Reports, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), number brr10.
    16. Ianchovichina, Elena, 2004. "Trade policy analysis in the presence of duty drawbacks," Journal of Policy Modeling, Elsevier, vol. 26(3), pages 353-371, April.
    17. Pierre Boulanger & Hasan Dudu & Emanuele Ferrari & George Philippidis, 2016. "Russian Roulette at the Trade Table: A Specific Factors CGE Analysis of an Agri-food Import Ban," Journal of Agricultural Economics, Wiley Blackwell, vol. 67(2), pages 272-291, June.
    18. Jiang, Tingsong, 2003. "The Impact of China's WTO Accession on its Regional Economies," Australasian Agribusiness Review, University of Melbourne, Department of Agriculture and Food Systems, vol. 11.
    19. Thomson, Heather & Corbett, James J. & Winebrake, James J., 2015. "Natural gas as a marine fuel," Energy Policy, Elsevier, vol. 87(C), pages 153-167.
    20. Henseler, Martin & Piot-Lepetit, Isabelle & Ferrari, Emanuele & Mellado, Aida Gonzalez & Banse, Martin & Grethe, Harald & Parisi, Claudia & Hélaine, Sophie, 2013. "On the asynchronous approvals of GM crops: Potential market impacts of a trade disruption of EU soy imports," Food Policy, Elsevier, vol. 41(C), pages 166-176.

    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:13:y:2021:i:16:p:9026-:d:613088. See general information about how to correct material in RePEc.

    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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.