Don’t go nuts over nuts : an analysis of policy to reduce water scarcity caused by nuts

The aim of this paper is to investigate the potential possibilities of reducing water scarcity, by targeting the water intensive consumption of nuts. Therefore, the research question is if consumption-based policies can decrease the consumption of nuts in Sweden, in order to reduce water scarcity in...

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Autor principal: Vinberg, Hanna
Formato: H2
Lenguaje:Inglés
Publicado: SLU/Dept. of Economics 2022
Materias:
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author Vinberg, Hanna
author_browse Vinberg, Hanna
author_facet Vinberg, Hanna
author_sort Vinberg, Hanna
collection Epsilon Archive for Student Projects
description The aim of this paper is to investigate the potential possibilities of reducing water scarcity, by targeting the water intensive consumption of nuts. Therefore, the research question is if consumption-based policies can decrease the consumption of nuts in Sweden, in order to reduce water scarcity in sensitive areas. This is of particular importance as Swedish health authorities promote nuts as a substitute to meat, creating a conflict between global sustainability goals, when aiming to curb food consumptions climate footprints, hence risk overlooking the rapidly growing issue of water scarcity. To answer the question an instore dataset was used, which provided information on snack products including nuts, and products similar to nuts. Nuts are currently seen as mainly a snack, though the risk of nuts being viewed as a main course is prevalent, as consumption is increasing. Using the Quadratic Almost Ideal Demand System model, consumers’ price sensitivity was estimated. The elasticities were further used to calculate demand curves for the included products. The last step was linking consumption to the environmental impact in order to examine the effect of consumption sided policies. Two scenarios were simulated to test the possible effect of policies targeting nut consumption. Scenario 1 allowed for a 10% tax on nuts, and an additional 5% subsidy was introduced on legumes in Scenario 2. The results indicate a reduced water scarcity in both scenarios, with about 5%. Implementation of a tax on nuts can be through increasing the VAT rate. However, an implementation of a subsidy on legumes may be difficult to implement because of the partly complicated nature of the policy instrument, and possible leakage. To conclude, a dietary transition away from nuts is possible by the use of consumption sided taxation.
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spelling RepoSLU181762022-08-31T01:00:43Z Don’t go nuts over nuts : an analysis of policy to reduce water scarcity caused by nuts Vinberg, Hanna Consumption demand dietary change elasticity food policy nuts water footprint water scarcity The aim of this paper is to investigate the potential possibilities of reducing water scarcity, by targeting the water intensive consumption of nuts. Therefore, the research question is if consumption-based policies can decrease the consumption of nuts in Sweden, in order to reduce water scarcity in sensitive areas. This is of particular importance as Swedish health authorities promote nuts as a substitute to meat, creating a conflict between global sustainability goals, when aiming to curb food consumptions climate footprints, hence risk overlooking the rapidly growing issue of water scarcity. To answer the question an instore dataset was used, which provided information on snack products including nuts, and products similar to nuts. Nuts are currently seen as mainly a snack, though the risk of nuts being viewed as a main course is prevalent, as consumption is increasing. Using the Quadratic Almost Ideal Demand System model, consumers’ price sensitivity was estimated. The elasticities were further used to calculate demand curves for the included products. The last step was linking consumption to the environmental impact in order to examine the effect of consumption sided policies. Two scenarios were simulated to test the possible effect of policies targeting nut consumption. Scenario 1 allowed for a 10% tax on nuts, and an additional 5% subsidy was introduced on legumes in Scenario 2. The results indicate a reduced water scarcity in both scenarios, with about 5%. Implementation of a tax on nuts can be through increasing the VAT rate. However, an implementation of a subsidy on legumes may be difficult to implement because of the partly complicated nature of the policy instrument, and possible leakage. To conclude, a dietary transition away from nuts is possible by the use of consumption sided taxation. SLU/Dept. of Economics 2022 H2 eng https://stud.epsilon.slu.se/18176/
spellingShingle Consumption
demand
dietary change
elasticity
food policy
nuts
water footprint
water scarcity
Vinberg, Hanna
Don’t go nuts over nuts : an analysis of policy to reduce water scarcity caused by nuts
title Don’t go nuts over nuts : an analysis of policy to reduce water scarcity caused by nuts
title_full Don’t go nuts over nuts : an analysis of policy to reduce water scarcity caused by nuts
title_fullStr Don’t go nuts over nuts : an analysis of policy to reduce water scarcity caused by nuts
title_full_unstemmed Don’t go nuts over nuts : an analysis of policy to reduce water scarcity caused by nuts
title_short Don’t go nuts over nuts : an analysis of policy to reduce water scarcity caused by nuts
title_sort don’t go nuts over nuts : an analysis of policy to reduce water scarcity caused by nuts
topic Consumption
demand
dietary change
elasticity
food policy
nuts
water footprint
water scarcity