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Demand for plant-based milk and effects of a carbon tax on fresh milk consumption in Sweden

Huang, Wei (2022). Demand for plant-based milk and effects of a carbon tax on fresh milk consumption in Sweden. Economic Analysis and Policy. 75 , 518-529
[Research article]

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A hypothetical carbon tax on the carbon footprint of fresh milk products from animals (cow’s milk) and plant-based substitutes (rice milk, oat milk, soy milk, almond milk) was applied to estimated price and income elasticities for Swedish household expenditure on these products. Overall aims were to (i) to estimate fresh milk consumption patterns in Swedish households and (ii) simulate the direct distributed effects of a carbon tax on fresh milk. The results indicated that fresh milk consumption in Swedish households is affected mainly by price and income, rather than by sociodemographic characteristics of the household. The estimates revealed a substitutional relationship between plant-based milk on one hand and low-fat and standard milk on the other, while there was a complementary relationship between plant-based and reduced-fat milk. The effects of a carbon tax were simulated based on damage cost and price. The results indicated that introduction of a carbon tax would decrease the carbon footprint of dairy fresh milk, but would increase the carbon footprint of plant-based milk because of the institutional and complementary relationship between the different categories of fresh milk. Thus levying a carbon tax on fresh dairy milk, rather than on plant-based milk, would be more likely to promote climate-friendly fresh milk consumption.

Authors/Creators:Huang, Wei
Title:Demand for plant-based milk and effects of a carbon tax on fresh milk consumption in Sweden
Series Name/Journal:Economic Analysis and Policy
Year of publishing :2022
Page range:518-529
Number of Pages:12
Publication Type:Research article
Article category:Scientific peer reviewed
Version:Published version
Copyright:Creative Commons: Attribution 4.0
Full Text Status:Public
Subjects:(A) Swedish standard research categories 2011 > 5 Social Sciences > 502 Economics and Business > Economics
Keywords:Carbon tax, Fresh milk, EASI demand system, Two-step estimation, Plant-based milk, Home-scanned censored data
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Type of IDID
ID Code:28439
Faculty:NJ - Fakulteten för naturresurser och jordbruksvetenskap
Department:(NL, NJ) > Dept. of Economics
Deposited By: SLUpub Connector
Deposited On:13 Jul 2022 13:25
Metadata Last Modified:13 Jul 2022 13:36

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