Positive and negative impacts of a meat tax on society: The case of Sweden

Valerie Friederike Berger

Master's thesis

Abstract:

Meat consumption and its societal effects have been of high interest to researchers, policy makers and the public in recent years. Meat provides both utility to the individual, as well as imposes externality cost on society. This thesis aims to investigate both sides, compare them and discuss which outweighs which. For this, Sweden as a case study was investigated, due to the amount of research existing and the country’s own interest in the topic. The paper bases its conclusions on extensive literature review, a research questionnaire and quantitative models. The results showed that both significant externality cost and utility exist. The research further proved, that a tax on meat could reduce the amount consumed but would also decrease the consumer’s welfare. However, the cost of meat may outweigh the utility lost. The conclusion can be drawn that incentivising a reduction in meat consumption may be justified, but due to the complexity of the topic, further research would be required.

Abstract:

Meat consumption and its societal effects have been of high interest to researchers, policy makers and the public in recent years. Meat provides both utility to the individual, as well as imposes externality cost on society. This thesis aims to investigate both sides, compare them and discuss which outweighs which. For this, Sweden as a case study was investigated, due to the amount of research existing and the country’s own interest in the topic. The paper bases its conclusions on extensive literature review, a research questionnaire and quantitative models. The results showed that both significant externality cost and utility exist. The research further proved, that a tax on meat could reduce the amount consumed but would also decrease the consumer’s welfare. However, the cost of meat may outweigh the utility lost. The conclusion can be drawn that incentivising a reduction in meat consumption may be justified, but due to the complexity of the topic, further research would be required.

Keywords

externality cost of meat consumption, meat utility, meat taxation, consumer welfare and compensating variation

Keywords

meat taxation, consumer welfare and compensating variation, externality cost of meat consumption, meat utility

Language used: English

Date on which the thesis was submitted / produced: 4. 9. 2020

Thesis defence

• Date of defence: 1. 2. 2021
• Supervisor: Bronislava Hořejší
• Reader: Marek Hudík

Vysoká škola ekonomická v Praze

Master programme / field:
Ekonomika a management / International Management