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Is Meat Too Cheap? Towards Optimal Meat Taxation

Franziska Funke, Linus Mattauch, Inge van den Bijgaart, H. Charles J. Godfray, Cameron Hepburn, David Klenert, Marco Springmann, Nicolas Treich

SSRN Electronic Journal · 2021

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Summary

This paper, authored by economists and food systems researchers, examines whether meat is underpriced relative to its full social and environmental costs, and proposes a framework for optimal taxation. Drawing on evidence of externalities across climate, water, land use, antimicrobial resistance, and public health, the authors appear to develop a quantitative approach to setting meat taxes that internalise these costs. The work bridges economic theory with food systems evidence to inform policy design.

UK applicability

The analysis is directly relevant to UK policy discussions around meat taxation, carbon pricing, and subsidy reform. UK policymakers developing fiscal instruments to meet net-zero and health targets could draw on the optimal tax framework, though empirical parameters may require UK-specific calibration (consumer elasticities, production systems, externality costs).

Key measures

As suggested by the title: optimal meat tax rates; external costs of meat production (health, environmental, resource-based); price elasticity of meat demand; distributional effects of taxation.

Outcomes reported

The study examines the case for meat taxation as an economic policy instrument to internalise external costs of meat production and consumption. It appears to synthesise evidence on meat system externalities and optimal tax design across health, environmental, and resource dimensions.

Theme
Policy, governance & rights
Subject
Food & agricultural policy
Study type
Policy
Study design
Policy report
Source type
Policy report
Status
Preprint
Geography
International
System type
Intensive livestock
DOI
10.2139/ssrn.3801702
Catalogue ID
BFmou2mlyw-ewwsch

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