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A pigovian tax on beef - consumption effects and consequence analysis

Törneke, Sofia LU (2014) NEKH01 20141
Department of Economics
Abstract
Meat production accounts for approximately 18 per cent of the total GHG emissions in the world and beef is the kind of meat associated with the highest emissions. This paper derives the beef demand and elasticities in Sweden using regression analysis. Further, it calculates the effects of a hypothetical pigovian consumption tax on beef to reduce beef consumption and the associated emissions. The short (long) run own-price elasticity was estimated to: -0,69 (-1,74) and the short (long) run income elasticity to 1,41 (3,58). When assuming a tax level of 28,1% the short run consumption reduction was 19,25% or 2,44 Kg per person per year. The reduction was illustrated to depend not only on own-price elasticities but also on assumptions made of... (More)
Meat production accounts for approximately 18 per cent of the total GHG emissions in the world and beef is the kind of meat associated with the highest emissions. This paper derives the beef demand and elasticities in Sweden using regression analysis. Further, it calculates the effects of a hypothetical pigovian consumption tax on beef to reduce beef consumption and the associated emissions. The short (long) run own-price elasticity was estimated to: -0,69 (-1,74) and the short (long) run income elasticity to 1,41 (3,58). When assuming a tax level of 28,1% the short run consumption reduction was 19,25% or 2,44 Kg per person per year. The reduction was illustrated to depend not only on own-price elasticities but also on assumptions made of the costs of environmenal problems in the future affecting the optimal tax level.
In the second part of the paper potential use of the tax revenue was discussed. The conclusion was that a lowering of the tax on green substitutes to meat was likely to be more efficient than a lowering of the tax on labour. (Less)
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author
Törneke, Sofia LU
supervisor
organization
course
NEKH01 20141
year
type
M2 - Bachelor Degree
subject
keywords
sustaniable consumption, pigovian taxes, meat consumption, beef demand
language
English
id
4459582
date added to LUP
2014-06-23 22:09:34
date last changed
2014-06-23 22:09:34
@misc{4459582,
  abstract     = {Meat production accounts for approximately 18 per cent of the total GHG emissions in the world and beef is the kind of meat associated with the highest emissions. This paper derives the beef demand and elasticities in Sweden using regression analysis. Further, it calculates the effects of a hypothetical pigovian consumption tax on beef to reduce beef consumption and the associated emissions. The short (long) run own-price elasticity was estimated to: -0,69 (-1,74) and the short (long) run income elasticity to 1,41 (3,58). When assuming a tax level of 28,1% the short run consumption reduction was 19,25% or 2,44 Kg per person per year. The reduction was illustrated to depend not only on own-price elasticities but also on assumptions made of the costs of environmenal problems in the future affecting the optimal tax level. 
In the second part of the paper potential use of the tax revenue was discussed. The conclusion was that a lowering of the tax on green substitutes to meat was likely to be more efficient than a lowering of the tax on labour.},
  author       = {Törneke, Sofia},
  keyword      = {sustaniable consumption,pigovian taxes,meat consumption,beef demand},
  language     = {eng},
  note         = {Student Paper},
  title        = {A pigovian tax on beef - consumption effects and consequence analysis},
  year         = {2014},
}