IDEAS home Printed from https://ideas.repec.org/p/hhs/slueko/2017_002.html
   My bibliography  Save this paper

Design of climate tax on food consumption

Author

Listed:
  • Gren, Ing-Marie

    () (Department of Economics, Swedish University of Agricultural Sciences)

  • Moberg, Emma

    (Department of Energy and Technology)

  • Röös, Elin

    (Department of Energy and Technology)

  • Säll, Sarah

    (Department of Economics, Swedish University of Agricultural Sciences)

  • Andersson, Julius

    (London School of Economics)

Abstract

This study examines appropriate design of climate taxes on consumption of food by constructing a simple theoretical model and exemplify the results on climate taxes on consumption of tomatoes and beef in Sweden. The theoretical results showed that i) existing taxes on greenhouse gases (GHG) should be considered to avoid double taxation, ii) taxes need to be differentiated between GHG (carbon dioxide, CO2, methane, CH4, and nitrous oxide, N2O, in present study) because of their different climate impact, and iii) suggested tax levels on GHG in the literature rest on quite different approaches to climate management. The calculations of climate taxes on tomatoes and beef in Sweden indicated considerable differences in the tax level depending on calculation method. The commonly applied suggestion of taxing carbon dioxide equivalents (CO2e) and disregard existing taxes on GHG emission results in a tax that is five times the appropriate tax for tomatoes and 2.5 times that for beef. The price increases on consumption of food due to a climate tax can thus show large variation depending on tax calculation method.

Suggested Citation

  • Gren, Ing-Marie & Moberg, Emma & Röös, Elin & Säll, Sarah & Andersson, Julius, 2017. "Design of climate tax on food consumption," Working Paper Series 2017:2, Swedish University of Agricultural Sciences, Department Economics.
  • Handle: RePEc:hhs:slueko:2017_002
    as

    Download full text from publisher

    File URL: https://www.dropbox.com/home/Working%20paper?preview=Design+of+carbon+tax+on+food+-+1707.pdf
    Download Restriction: no

    More about this item

    Keywords

    climate tax on food; different GHG; double-taxation; tomatoes; beef; Sweden;

    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
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

    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:hhs:slueko:2017_002. 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: (Elizabeth Hillerius). General contact details of provider: http://edirc.repec.org/data/iesluse.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.