Does a Meat tax Trump Green Label Education Effects

2019-08-14T17:41:12Z (GMT) by Jonthan Webster Lawing
External cost from meat consumption raises an issue of possible government mechanisms toward mitigation. Economic theory provides a framework for determining the optimal set of mechanisms considering the associated benefits and costs. Such a theoretical development rests on the responsiveness of consumers to alternative mechanisms. Considering two mechanisms, a Pigouvian tax and green-label education, yields tandem theoretical optimal government mechanisms. Populating this theoretical model with empirically derived elasticities and other parameters provides an application. Results indicate education alone will likely not yield a high social-optimal level of mitigation. Instead, a Pigouvian tax will be required to move consumption toward a socially desired state.



CC BY 4.0