The effect of an environmental tax on the consumption of dairy and plant-based drinks : the case of Sweden

In the light of global greenhouse gases (GHG) mitigation targets, this study aims to investigate if a consumption-sided CO2e weighted tax scheme on dairy and plant-based drinks can shift consumption towards plant-based drinks and thereby lower GHG emissions. Using scanner data from a Swedish superma...

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Autor principal: Törnqvist, Daniel
Formato: H2
Lenguaje:Inglés
Publicado: SLU/Dept. of Economics 2022
Materias:
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author Törnqvist, Daniel
author_browse Törnqvist, Daniel
author_facet Törnqvist, Daniel
author_sort Törnqvist, Daniel
collection Epsilon Archive for Student Projects
description In the light of global greenhouse gases (GHG) mitigation targets, this study aims to investigate if a consumption-sided CO2e weighted tax scheme on dairy and plant-based drinks can shift consumption towards plant-based drinks and thereby lower GHG emissions. Using scanner data from a Swedish supermarket ICA Maxi Nacka located in Stockholm, Sweden, we construct a multistage Quadratic Almost Ideal Demand System (QUAIDS) to evaluate changes in demand due to the tax implementation. The results show that net GHG emissions are reduced by 4.27 percent where 100 percent of the reductions stem from reduced dairy consumption and 100 percent of the increases from increased plant-based drinks consumption. In the sensitivity analysis we exempt oat drinks from the taxation which marginally increased the demand resulting in increased net GHG reductions of 4.40 percent.
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institution Swedish University of Agricultural Sciences
language Inglés
publishDate 2022
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spelling RepoSLU180852022-07-16T01:07:16Z The effect of an environmental tax on the consumption of dairy and plant-based drinks : the case of Sweden Törnqvist, Daniel consumer demand consumption taxation dietary transition GHG mitigation plant-based drinks Sweden In the light of global greenhouse gases (GHG) mitigation targets, this study aims to investigate if a consumption-sided CO2e weighted tax scheme on dairy and plant-based drinks can shift consumption towards plant-based drinks and thereby lower GHG emissions. Using scanner data from a Swedish supermarket ICA Maxi Nacka located in Stockholm, Sweden, we construct a multistage Quadratic Almost Ideal Demand System (QUAIDS) to evaluate changes in demand due to the tax implementation. The results show that net GHG emissions are reduced by 4.27 percent where 100 percent of the reductions stem from reduced dairy consumption and 100 percent of the increases from increased plant-based drinks consumption. In the sensitivity analysis we exempt oat drinks from the taxation which marginally increased the demand resulting in increased net GHG reductions of 4.40 percent. SLU/Dept. of Economics 2022 H2 eng https://stud.epsilon.slu.se/18085/
spellingShingle consumer demand
consumption taxation
dietary transition
GHG mitigation
plant-based drinks
Sweden
Törnqvist, Daniel
The effect of an environmental tax on the consumption of dairy and plant-based drinks : the case of Sweden
title The effect of an environmental tax on the consumption of dairy and plant-based drinks : the case of Sweden
title_full The effect of an environmental tax on the consumption of dairy and plant-based drinks : the case of Sweden
title_fullStr The effect of an environmental tax on the consumption of dairy and plant-based drinks : the case of Sweden
title_full_unstemmed The effect of an environmental tax on the consumption of dairy and plant-based drinks : the case of Sweden
title_short The effect of an environmental tax on the consumption of dairy and plant-based drinks : the case of Sweden
title_sort effect of an environmental tax on the consumption of dairy and plant-based drinks : the case of sweden
topic consumer demand
consumption taxation
dietary transition
GHG mitigation
plant-based drinks
Sweden