Does a Meat Tax Trump Green Label Education Effects

Jonthan Lawing, Purdue University

Abstract

External cost from meat consumption raises an issue of possible government mechanisms toward mitigation. Economic theory provides a framework for determining the optimal set of mechanisms considering the associated benefits and costs. Such a theoretical development rests on the responsiveness of consumers to alternative mechanisms. Considering two mechanisms, a Pigouvian tax and green-label education, yields tandem theoretical optimal government mechanisms. Populating this theoretical model with empirically derived elasticities and other parameters provides an application. Results indicate education alone will likely not yield a high social-optimal level of mitigation. Instead, a Pigouvian tax will be required to move consumption toward a socially desired state.

Degree

M.Sc.

Advisors

Wetzstein, Purdue University.

Subject Area

Design|Sustainability|Agriculture|Animal sciences|Behavioral psychology|Education|Political science|Psychology

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