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How prices affect Scottish household demand for milk products and their low carbon alternatives?

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  • Chalmers, Neil George
  • Revoredo-Giha, Cesar
  • Shackley, Simon

Abstract

The Scottish milk chain is the highest green house gas emitter out of the dairy chain. This paper studies the effect of prices on household carbon footprints of both Scottish urban and rural households and the subsequent demand for milk products. Household time series data for 2006–2011 and carbon footprint data were used to estimate a static demand model. Results suggest that a 1% increase in net milk prices equates to a likely carbon footprint reduction of 4,684.13t CO2e /y for urban households. Both households were found to substitute into the lower carbon alternative of soya milk when whole milk prices increase.

Suggested Citation

  • Chalmers, Neil George & Revoredo-Giha, Cesar & Shackley, Simon, 2014. "How prices affect Scottish household demand for milk products and their low carbon alternatives?," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182965, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae14:182965
    DOI: 10.22004/ag.econ.182965
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    References listed on IDEAS

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    1. Edjabou, Louise Dyhr & Smed, Sinne, 2013. "The effect of using consumption taxes on foods to promote climate friendly diets – The case of Denmark," Food Policy, Elsevier, vol. 39(C), pages 84-96.
    2. Alain Carpentier & Hervé Guyomard, 2001. "Unconditional Elasticities in Two-Stage Demand Systems: An Approximate Solution," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(1), pages 222-229.
    3. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-326, June.
    4. Kuo S. Huang, 1996. "Nutrient Elasticities in a Complete Food Demand System," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(1), pages 21-29.
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    Cited by:

    1. Li, Xiaogu & Jensen, Kimberly L. & Clark, Christopher D. & Lambert, Dayton M., 2016. "Consumer willingness to pay for beef grown using climate friendly production practices," Food Policy, Elsevier, vol. 64(C), pages 93-106.

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    Keywords

    Demand and Price Analysis;

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