An environmental tax towards more sustainable food consumption: empirical evidence of the French meat and marine food consumption
After fossil fuels, agricultural production and fisheries are industries with the largest impact on the environment in terms of greenhouse gas (GHG) emissions, especially in the production of ruminant meats such as beef, veal or lamb. In order to reduce this environmental impact, consumers can change their food consumption habits to utilize less polluting products such as white meats or vegetable food products. We analyze whether or not a CO2 equivalent (CO2-eq) tax policy can change consumer habits with respect to meat and marine purchases, and using different indicators, we examine the effect of such a tax policy on the environment. We also infer the implications of such a tax on nutritional indicators as well as on consumer welfare. First, to evaluate the impact of a variation in the price of meat and marine products on consumption, we estimate a random coeficients logit demand model using purchase data from the French household panel Kantar Worldpanel. We define 28 meat and marine products, and divide them into eight meat and marine product categories. This model allows us to estimate flexible own- and cross-price elasticities of meat and marine products' demand. Results on the consumer purchase behavior model suggest that the demands for these products are fairly inelastic, and substitutions occur both within and between categories for all products. Moreover, using two levels of a CO2-eq tax (€56 and €200 per tonne of CO2-eq per kilogram of product) applied to either all meat and marine products, only ruminant meats, or only beef, we show that a tax of €56 leads to a very small change in GHG emissions, even if all meat and marine products are taxed. The most efficient scenario would be to tax only the beef category at a high level since it would allow a 70% reduction in the total variation of GHG emissions, and would be responsible for only 20% of the consumer welfare damages generated when all products are taxed.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Diansheng Dong & Christopher G. Davis & Hayden Stewart, 2015. "The quantity and variety of households’ meat purchases: A censored demand system approach," Agricultural Economics, International Association of Agricultural Economists, vol. 46(1), pages 99-112, 01.
- Nevo, Aviv, 2001.
"Measuring Market Power in the Ready-to-Eat Cereal Industry,"
Econometric Society, vol. 69(2), pages 307-342, March.
- Nevo, Aviv, 1998. "Measuring Market Power in the Ready-To-Eat Cereal Industry," Research Reports 25164, University of Connecticut, Food Marketing Policy Center.
- Nevo, Aviv, 1999. "Measuring Market Power in the Ready-to-Eat Cereal Industry," Competition Policy Center, Working Paper Series qt7cm5p858, Competition Policy Center, Institute for Business and Economic Research, UC Berkeley.
- Aviv Nevo, 2003. "Measuring Market Power in the Ready-to-Eat Cereal Industry," Microeconomics 0303006, EconWPA.
- Aviv Nevo, 1998. "Measuring Market Power in the Ready-to-Eat Cereal Industry," NBER Working Papers 6387, National Bureau of Economic Research, Inc.
- Nevo, Aviv, 1998. "Measuring Market Power in the Ready-To-Eat Cereal Industry," Food Marketing Policy Center Research Reports 037, University of Connecticut, Department of Agricultural and Resource Economics, Charles J. Zwick Center for Food and Resource Policy.
- Reynolds, Christian John & Piantadosi, Julia & Buckley, Jonathan David & Weinstein, Philip & Boland, John, 2015. "Evaluation of the environmental impact of weekly food consumption in different socio-economic households in Australia using environmentally extended input–output analysis," Ecological Economics, Elsevier, vol. 111(C), pages 58-64.
- Smed, Sinne & Jensen, Jorgen D. & Denver, Sigrid, 2007. "Socio-economic characteristics and the effect of taxation as a health policy instrument," Food Policy, Elsevier, vol. 32(5-6), pages 624-639.
- Ríos-Núñez, Sandra M. & Coq-Huelva, Daniel & García-Trujillo, Roberto, 2013. "The Spanish livestock model: A coevolutionary analysis," Ecological Economics, Elsevier, vol. 93(C), pages 342-350.
- Fiala, Nathan, 2008. "Meeting the demand: An estimation of potential future greenhouse gas emissions from meat production," Ecological Economics, Elsevier, vol. 67(3), pages 412-419, October.
- Fredrik Hedenus & Stefan Wirsenius & Daniel Johansson, 2014. "The importance of reduced meat and dairy consumption for meeting stringent climate change targets," Climatic Change, Springer, vol. 124(1), pages 79-91, May.
- Stefan Wirsenius & Fredrik Hedenus & Kristina Mohlin, 2011. "Greenhouse gas taxes on animal food products: rationale, tax scheme and climate mitigation effects," Climatic Change, Springer, vol. 108(1), pages 159-184, September.
- Irz, Xavier & Leroy, Pascal & Réquillart, Vincent & Soler, Louis-Georges, 2016. "Welfare and sustainability effects of dietary recommendations," Ecological Economics, Elsevier, vol. 130(C), pages 139-155.
- Irz, Xavier & Leroy, Pascal & Réquillart, Vincent & Solerb, Louis-Georges, 2015. "Welfare and sustainability effects of dietary recommendations," 143rd Joint EAAE/AAEA Seminar, March 25-27, 2015, Naples, Italy 202718, European Association of Agricultural Economists.
- Irz, Xavier & Leroy, Pascal & Réquillart, Vincent & Soler, Louis-Georges, 2015. "Welfare and sustainability effects of dietary recommendations," TSE Working Papers 15-565, Toulouse School of Economics (TSE), revised Jun 2016.
- David Revelt & Kenneth Train, 1998. "Mixed Logit With Repeated Choices: Households' Choices Of Appliance Efficiency Level," The Review of Economics and Statistics, MIT Press, vol. 80(4), pages 647-657, November.
- Craig A. Gallet, 2010. "Meat Meets Meta: A Quantitative Review of the Price Elasticity of Meat," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 92(1), pages 258-272.
- Marthe Austgulen, 2014. "Environmentally Sustainable Meat Consumption: An Analysis of the Norwegian Public Debate," Journal of Consumer Policy, Springer, vol. 37(1), pages 45-66, March.
- 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.
- Tukker, Arnold & Goldbohm, R. Alexandra & de Koning, Arjan & Verheijden, Marieke & Kleijn, René & Wolf, Oliver & Pérez-Domínguez, Ignacio & Rueda-Cantuche, Jose M., 2011. "Environmental impacts of changes to healthier diets in Europe," Ecological Economics, Elsevier, vol. 70(10), pages 1776-1788, August.
- Vinnari, Markus & Tapio, Petri, 2012. "Sustainability of diets: From concepts to governance," Ecological Economics, Elsevier, vol. 74(C), pages 46-54.
- Bonnet, Céline & Réquillart, Vincent, 2013. "Tax incidence with strategic firms in the soft drink market," Journal of Public Economics, Elsevier, vol. 106(C), pages 77-88.
- Bonnet, Céline & Réquillart, Vincent, 2011. "Tax incidence with strategic firms on the soft drink market," TSE Working Papers 11-233, Toulouse School of Economics (TSE), revised Jul 2012.
When requesting a correction, please mention this item's handle: RePEc:tse:wpaper:30419. 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: ()
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 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.