CEU eTD Collection (2021); Atamanciuc, Anastasia: Fiscal Impact Channels of a Red and Processed Meat Tax in the Netherlands

CEU Electronic Theses and Dissertations, 2021
Author Atamanciuc, Anastasia
Title Fiscal Impact Channels of a Red and Processed Meat Tax in the Netherlands
Summary In recent years, concerns over the health and environmental consequences of the consumption of red and processed meat have increased. Scientific studies have linked the consumption of red and processed meat to an increased probability of cardiovascular diseases, diabetes, obesity, and cancers. At the same time, livestock production is one of the key contributors to greenhouse gas emissions, mainly methane and nitrous oxide emissions. Evidence from academic studies and real-world examples suggest that fiscal policies can be efficient in promoting both healthy and environmentally sustainable diets. This thesis aims to estimate the effect of a tax on red and processed meat in the Netherlands on consumption, budget revenues, and environmental footprint. The analysis is based on the Dutch National Consumption Survey and price elasticities of demand reported by other studies. I calculate the change in consumption of red and processed meat in the three tax scenarios: 12%, 18%, and 30% tax rates. Based on the estimated consumption after the price increase, I calculate the expected budget revenues and reduction of the environmental footprint. Tax policy design and other policy implementation questions are considered. It is concluded that a 30% sales tax would result in an average decrease of consumption of red and processed meat by 13.7%. revenues are estimated to equal 975.7 million euros, as well as 631.8 million euros of benefits due to decreased social cost are expected.
Supervisor Balázs Romhányi
Department Economics MA
Full texthttps://www.etd.ceu.edu/2021/atamanciuc_anastasia.pdf

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