The effects of introducing a carbon-meat tax in the EU: a literature review

Abstract

The food industry, especially meat production, is a major source of greenhouse gas emissions, contributing to climate change. Although the European Union has taken several measures to curb the effects from the agricultural sector, more recently launching the Farm to fork Strategy, livestock production seems to be left out of the proposed actions. Since 1985, the Commission has stated that the Polluter Pays principle should be applied to agriculture and in the most recent Strategy, this is also mentioned alluding to a possible carbon-tax on food products. In fact, one of the most popular measures discussed to internalise the environmental externalities of the sector and to encourage a reduction in animal products consumption is the introduction of a carbon tax, namely on meat products. Although several countries have applied climate taxes on fossil fuels and taxes on certain foods for health reasons, no country has applied a tax on food products for environmental reasons. In this article, we analyse the effects of implementing a carbon meat-tax in the EU by conducting a literature review of simulation studies. We discuss possible benefits and disadvantages with a practical, environmental, and socio-economic view.