Environmental tax on Swedish meat production
In my research I look at the marginal emission costs from beef pork and poultry, focusing on GHG
emissions and nutritional substances. The costs are then introduced as taxes on retail prices. A
demand system is set up with estimations of price- and income elasticities. Taxes reduce
consumption and emission levels each year. Results show that rather large taxes would be a
worthwhile contribution to lessening the negative environmental impact in Sweden.
Livestock holdings and animal production is one of the main threats to a sustainable environment. It
is responsible for 18% of total GHG emissions worldwide (FAO 2006) which is the largest share of all
sectors. In 2009 the total emission levels of GHG emissions from Swedish meat consumption
exceeded 6 million tons.
The problems caused by nutritional substances are not as widely discussed as GHG emissions and
global warming. Nitrogen and phosphorus cause eutrophication with algae blooming in lakes and
oceans as well as excessive nutrition loads in forests. Further, it results in loss of biodiversity when
nitrous loving species take over. Nitrogen compounds such as ammonia cause acid rains and
acidification as well as eutrophication. Beef is the main emitter of GHG per kilo meat (Cederberg et al
2009). Due to complementarities between dairy production and meat production most emissions
from cattle are directed towards milk. This makes emissions of nutritions highest from pork, followed
by poultry.
Recently researchers have recommended decreasing meat consumption for environmental reason.
(see for example UNEP 2009 and Röös Tjärnebo 2011). The environmental gain would show direct
through reduced emission levels and indirect through land that can be set aside for e.g. energy crop
production (Wirsenius et al 2011). Taxing consumption could be one way.
Swedish consumption of beef, pork and poultry has increased with 38,5% per capita during the
previous three decades and total consumption has risen from 460 thousand tons to 725 thousand
tons between 1990 and 2009, which is an increase of 58%. In 2009, each Swede consumed 78,4 kilo
of beef pork and poultry. The same trend is taking place in many countries, which makes emissions
from meat consumption an increasing problem.
References
Cederberg C, Sonesson U, Henriksson M, Sund V, Davis J, 2009. Greenhouse gas emissions from
Swedish production of meat, milk and eggs 1990 and 2005. SIK report 793. ISBN 987-91-7290-284-8.
FAO 2006, Steinfeld H, Gerber P, Wassenaar T, Castel V, Rosales M, De Haan C, Livestock´s Long
Shadow- environmental issues and options. FAO, Agriculture and Consumer protection Department.
Röös E, Tjärnemo H, 2011. Challenges of carbon labeling of food products: a consumer research
perspective. British Food Journal, vol 113. No 8 2011. Pp 982-96
UNEP 2009, Nellmann C, MacDevette M, Manders T, Eickhout B, Svihus B, Prins A G Katlenborn B P.
The environmental food crisis- The environment´s role in averting future food crises. UNEP/ GRIDArendal. ISBN: 978-82-7701-054-0.
Wirsenius S, Hedenus F, Mohlin K, 2011. Greenhouse gas taxes on animal food products: Rationale,
tax scheme and climate mitigation effects. Climate Change, 108(1-2) s. 159-184