[go: up one dir, main page]
More Web Proxy on the site http://driver.im/
IDEAS home Printed from https://ideas.repec.org/p/ags/aaea14/169974.html
   My bibliography  Save this paper

Taxing Animal Products: Protein Demand under Environmental Pressure and Social Impact in France

Author

Listed:
  • France, Caillavet
  • Adélaide, Fadhuile
  • Véronique, Nichèle
Abstract
Europe committed to reduce greenhouse gas emissions (GHG) by 40 % by 2030 from 1990 levels. Food emits about 30% of all GHG, the major toll arising from animal products (half of food GHG). This urges the necessity of public actions to encourage sustainable diets. Food policy is now at the double stake of preserving environment and improving health. To implement a public policy combining environmental and nutritional issues in a socially- conscious framework, a food demand study and the potential substitutions between foods is necessary. This article aims at offering a solid base for such policy decisions. Which are the food groups more suitable for a price change? Where are the more disparities in price responsiveness among income classes? Are own-price effects the only relevant? Do cross-price effects matter? To study food demand, we estimate an EASI demand system. It is based on a pseudo panel of 8112 observations constructed from Kantar panel data (1998-2010). It registers French households purchases for food-at-home. We add the nutritional content and Greenhouse gas emission related to foods through Life Cycle Analysis. For 21 food groups, built according to their environmental and nutritional characteristics, we run expenditure and price elasticities. Based on these results, two taxation scenarios are implemented. For each we increase by 20% the prices of food categories with most adverse effects on (1) environment only (ENV) and (2) both environment and health (ENV-NUT). The ENV scenario induces more reductions in environment impact than the ENV-NUT scenario, in particular for SO2 emissions. A greatest impact is observed for lower-average income households and with a household head less than 30 years old. However, undesirable nutritional effects lead to consider the necessity of a trade-off between environment and nutrition. Our conclusions find that this trade-off is not so costly (-18% in terms of CO2). Moreover, our results give new insights for targeting public policies toward the youngest households which we find more sensitive to prices and which are at the beginning of the consumption life-cycle.

Suggested Citation

  • France, Caillavet & Adélaide, Fadhuile & Véronique, Nichèle, 2014. "Taxing Animal Products: Protein Demand under Environmental Pressure and Social Impact in France," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 169974, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea14:169974
    DOI: 10.22004/ag.econ.169974
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/169974/files/TaxingAnimalProducts_2014_AAEA_AnnualConference.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.169974?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Timothy K.M. Beatty & Jeffrey T. LaFrance, 2005. "United States Demand for Food and Nutrition in the Twentieth Century," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(5), pages 1159-1166.
    2. Blundell, Richard & Robin, Jean Marc, 1999. "Estimation in Large and Disaggregated Demand Systems: An Estimator for Conditionally Linear Systems," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 14(3), pages 209-232, May-June.
    3. Crawford, Ian & Laisney, Francois & Preston, Ian, 2003. "Estimation of household demand systems with theoretically compatible Engel curves and unit value specifications," Journal of Econometrics, Elsevier, vol. 114(2), pages 221-241, June.
    4. Richard Tiffin & Matthieu Arnoult, 2010. "The demand for a healthy diet: estimating the almost ideal demand system with infrequency of purchase," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 37(4), pages 501-521, December.
    5. François Gardes & Greg J, Duncan & Patrice Gaubert & Christophe Starzec, 2002. "Panel and Pseudo-Panel Estimation of Cross-Sectional and Time Series Elasticities of Food Consumption : The Case of American and Polish Data," Working Papers 2002-02, Center for Research in Economics and Statistics.
    6. Giancarlo Moschini, 1995. "Units of Measurement and the Stone Index in Demand System Estimation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(1), pages 63-68.
    7. Timothy K.M. Beatty, 2010. "Do the Poor Pay More for Food?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 92(3), pages 608-621.
    8. Hoolohan, C. & Berners-Lee, M. & McKinstry-West, J. & Hewitt, C.N., 2013. "Mitigating the greenhouse gas emissions embodied in food through realistic consumer choices," Energy Policy, Elsevier, vol. 63(C), pages 1065-1074.
    9. Edjabou, Louise Dyhr & Smed, Sinne, 2013. "The effect of using consumption taxes on foods to promote climate friendly diets – The case of Denmark," Food Policy, Elsevier, vol. 39(C), pages 84-96.
    10. Smed, Sinne & Jensen, Jorgen D. & Denver, Sigrid, 2007. "Socio-economic characteristics and the effect of taxation as a health policy instrument," Food Policy, Elsevier, vol. 32(5-6), pages 624-639.
    11. Huang, Kuo S. & Lin, Biing-Hwan, 2000. "Estimation of Food Demand Nutrient Elasticities from household Survey Data," Technical Bulletins 184370, United States Department of Agriculture, Economic Research Service.
    12. Gardes, Francois & Duncan, Greg J. & Gaubert, Patrice & Gurgand, Marc & Starzec, Christophe, 2005. "Panel and Pseudo-Panel Estimation of Cross-Sectional and Time Series Elasticities of Food Consumption: The Case of U.S. and Polish Data," Journal of Business & Economic Statistics, American Statistical Association, vol. 23, pages 242-253, April.
    13. Huang, Kuo S. & Lin, Biing-Hwan, 2000. "Estimation Of Food Demand And Nutrient Elasticities From Household Survey Data," Technical Bulletins 33579, United States Department of Agriculture, Economic Research Service.
    14. Chancel, Lucas, 2014. "Are younger generations higher carbon emitters than their elders?," Ecological Economics, Elsevier, vol. 100(C), pages 195-207.
    15. Jean-Marc Robin, 1999. "[Econometrics of systems of demand] [Econométrie des systèmes de demande]," Post-Print hal-02688894, HAL.
    16. Olivier Allais & Patrice Bertail & Véronique Nichèle, 2010. "The Effects of a Fat Tax on French Households' Purchases: A Nutritional Approach," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 92(1), pages 228-245.
    17. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-326, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Irz, Xavier & Mazzocchi, Mario & Réquillart, Vincent & Soler, Louis-Georges, 2015. "Research in Food Economics: past trends and new challenges," Revue d'Etudes en Agriculture et Environnement, Editions NecPlus, vol. 96(01), pages 187-237, March.
    2. Irz, Xavier & Leroy, Pascal & Réquillart, Vincent & Soler, Louis-Georges, 2016. "Welfare and sustainability effects of dietary recommendations," Ecological Economics, Elsevier, vol. 130(C), pages 139-155.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Caillavet, France & Fadhuile, Adelaide & Nichèle, Véronique, 2014. "Taxing animal foods for sustainability: environmental, nutritional and social perspectives in France," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182863, European Association of Agricultural Economists.
    2. Olivier Allais & Patrice Bertail & Véronique Nichèle, 2010. "The Effects of a Fat Tax on French Households' Purchases: A Nutritional Approach," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 92(1), pages 228-245.
    3. Juarez-Torres, Miriam, 2015. "The Impact of Food Price Shocks on Consumption and Nutritional Patterns of Urban Mexican Households," 2015 Conference, August 9-14, 2015, Milan, Italy 211818, International Association of Agricultural Economists.
    4. Juárez-Torres, Miriam, 2013. "The Impact of Food Price Shocks on the Consumption and Nutritional Patterns of Mexican Households," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150636, Agricultural and Applied Economics Association.
    5. Jing Li & Edward C. Jaenicke & Tobenna D. Anekwe & Alessandro Bonanno, 2018. "Demand for ready‐to‐eat cereals with household‐level censored purchase data and nutrition label information: A distance metric approach," Agribusiness, John Wiley & Sons, Ltd., vol. 34(4), pages 687-713, October.
    6. Allais, Olivier & Bertail, Patrice & Nichele, Veronique, 2008. "The Effects of a "Fat Tax" on the Nutrient Intake of French Households," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 43967, European Association of Agricultural Economists.
    7. Caro, Juan Carlos & Ng, Shu Wen & Taillie, Lindsey Smith & Popkin, Barry M., 2017. "Designing a tax to discourage unhealthy food and beverage purchases: The case of Chile," Food Policy, Elsevier, vol. 71(C), pages 86-100.
    8. Lin, Biing-Hwan & Ver Ploeg, Michele & Kasteridis, Panagiotis & Yen, Steven T., 2014. "The roles of food prices and food access in determining food purchases of low-income households," Journal of Policy Modeling, Elsevier, vol. 36(5), pages 938-952.
    9. Tafere, Kibrom & Taffesse, Alemayehu Seyoum & Tamru, Seneshaw & Tefera, Nigussie & Paulos, Zelekawork, 2011. "Food demand elasticities in Ethiopia: Estimates using household income consumption expenditure (HICE) survey data," ESSP working papers 11, International Food Policy Research Institute (IFPRI).
    10. Cremer, Helmuth & Goulão, Catarina & Roeder, Kerstin, 2016. "Earmarking and the political support of fat taxes," Journal of Health Economics, Elsevier, vol. 50(C), pages 258-267.
    11. Denni Tommasi, 2016. "Household Responses to cash Transfers," Working Papers ECARES ECARES 2016-20, ULB -- Universite Libre de Bruxelles.
    12. Anurag Sharma & Katharina Hauck & Bruce Hollingsworth & Luigi Siciliani, 2014. "The Effects Of Taxing Sugar‐Sweetened Beverages Across Different Income Groups," Health Economics, John Wiley & Sons, Ltd., vol. 23(9), pages 1159-1184, September.
    13. Biing‐Hwan Lin & Steven T. Yen & Diansheng Dong & David M. Smallwood, 2010. "Economic Incentives For Dietary Improvement Among Food Stamp Recipients," Contemporary Economic Policy, Western Economic Association International, vol. 28(4), pages 524-536, October.
    14. repec:hal:spmain:info:hdl:2441/1ej8deo44v9t38bpf73n3rflp8 is not listed on IDEAS
    15. Okrent, Abigail M. & Alston, Julian M., 2011. "Demand for Food in the United States: A Review of Literature, Evaluation of Previous Estimates, and Presentation of New Estimates of Demand," Monographs, University of California, Davis, Giannini Foundation, number 251908, December.
    16. Paul Oslington, 2012. "General Equilibrium: Theory and Evidence," The Economic Record, The Economic Society of Australia, vol. 88(282), pages 446-448, September.
    17. De Agostini, Paola, 2014. "The effect of food prices and household income on the British diet," ISER Working Paper Series 2014-10, Institute for Social and Economic Research.
    18. Tagliati, Federico, 2022. "Welfare effects of an in-kind transfer program: Evidence from Mexico," Journal of Development Economics, Elsevier, vol. 154(C).
    19. Tey, (John) Yeong-Sheng & Shamsudin, Mad Nasir & Mohamed, Zainalabidin & Abdullah, Amin Mahir & Radam, Alias, 2008. "Emerging food demand behaviors in Malaysia: Incorporating quality effects in demand analyses," MPRA Paper 14832, University Library of Munich, Germany.
    20. W D A Bryant, 2009. "General Equilibrium:Theory and Evidence," World Scientific Books, World Scientific Publishing Co. Pte. Ltd., number 6875, August.
    21. Cuma Akbay, 2007. "Urban Households’ Cooking Oil and Fat Consumption Patterns in Turkey: Quality Vs. Quantity," Quality & Quantity: International Journal of Methodology, Springer, vol. 41(6), pages 851-867, December.

    More about this item

    Keywords

    Consumer/Household Economics; Demand and Price Analysis; Environmental Economics and Policy; Food Consumption/Nutrition/Food Safety;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aaea14:169974. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.