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Responsible:


Jonas Nordström

Economic policy instruments for sustainable consumption

Within the climate and health area, there are a number of political goals to reduce the impact on climate and improve public health. To reach these goals one can use economic policy instruments, such as taxes and subsidies. Before the policy instruments are introduced it is of interest to study the effects of policies.

In this project we will develop a model to study the effects of tax reforms designed to encourage sustainable consumption from a climate and health perspective. It can for example be taxes on food products based on their CO2 footprints. The model is based on detailed consumption data at the household level, and includes e.g. data on consumption of food, transportation, energy, clothes, etc. Within the project we aim to study health, climate, welfare and fiscal effects of the introduction of various product taxes and subsidies.

The project is in cooperation with Linda Thunström, University of Wyoming, and Ulf Gerdtham, The Swedish Institute for Health Economics. It is financed by the Swedish Retail and Wholesale Council, and the Swedish Research Council for Working Life and Welfare (FORTE). The project runs until 2020.