IDEAS home Printed from https://ideas.repec.org/p/ags/aesc11/108793.html
   My bibliography  Save this paper

The Welfare Effects of Greenhouse Gas Emissions in German Pork Production

Author

Listed:
  • Heinrich, Barbara
  • von Cramon-Taubadel, Stephan

Abstract

Greenhouse gas (GHG) emissions are an externality of the pork production process. To respond to climate change concerns and reduce GHG emissions, internalizing this external effect using a market-based economic instrument would be economically efficient. We calculate the welfare effects of GHG emissions using a partial equilibrium model of the German pork market. Sensitivity analysis is used to investigate the impacts of emission prices and emission rates on the welfare effects of reducing GHG emissions. Potential overall welfare gains amount to roughly € 360,000 in the base setting and increase to roughly € 3 million when emission prices are tripled. This sensitivity highlights the need for more dependable estimates of key parameters such as emission prices and emission rates. However, even the largest estimates of these welfare gains are relatively small. By contrast, the distributional effects of internalizing GHG externalities in pork production for producers, consumers and the state are large in all scenarios. The large redistribution effects that follow from even a small pork price increase as a result of internalizing GHG emissions indicate that attempts to tie German pork production into such policies would be highly controversial but may create incentives to invest in technologies which mitigate GHG emissions.

Suggested Citation

  • Heinrich, Barbara & von Cramon-Taubadel, Stephan, 2011. "The Welfare Effects of Greenhouse Gas Emissions in German Pork Production," 85th Annual Conference, April 18-20, 2011, Warwick University, Coventry, UK 108793, Agricultural Economics Society.
  • Handle: RePEc:ags:aesc11:108793
    as

    Download full text from publisher

    File URL: http://purl.umn.edu/108793
    Download Restriction: no

    More about this item

    Keywords

    Welfare effects; greenhouse gas emissions; pork production; partial equilibrium model; Environmental Economics and Policy; Food Consumption/Nutrition/Food Safety; H23; Q18; Q54;

    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:ags:aesc11:108793. 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: (AgEcon Search). General contact details of provider: http://edirc.repec.org/data/aesukea.html .

    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.