Food production causes significant greenhouse gas emissions and environmental pressures. Economic incentives targeting consumer behavior, such as a climate tax on food items with high greenhouse gas emissions, could be a way of decreasing the climate impact from food.
The aim of this project is to analyze how a climate tax can be designed in order to be effective. Furthermore, distributional impacts and impact on nutrient intake in different income groups, on Swedish farmers and environment and climate are analyzed. The tax could potentially lead to a decrease in domestic production and it is therefore also investigated how the tax revenue could be used to mitigate such effects.
Agrifood is responsible for modelling the recycling of the tax revenue back to farmers in terms of increased area payment within the Basic Payment Scheme and as subsidies for restoration of wetlands and conservation of grasslands. The tax is inferred on meat and dairy products in the Swedish market, for domestically produced as well as imported goods and the modelling is done in the Common Agricultural Partial Regionalized Impact model (CAPRI).
The projects is a collaboration with researchers at SLU and coordinated by Ing-Marie Green (SLU). The project will be finished in spring 2020.