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GTAP Events: Center Seminar Series

"Why a Global Carbon Policy could have a dramatic impact on the pattern of worldwide livestock production"
by Misak Avetisyan

While it is rational to expect that GHG taxation or payment can help to achieve the desired level of pollution, the effect of a tax or payment will vary across countries and sectors, and it may have unexpected consequences for producers and consumers of the good in question. New environmental regulations and policies will affect the relationship between production and climate change. This is also true for the food sector, especially for livestock, which can be characterized with significantly different emissions intensities per dollar of output across countries. We decompose emissions intensities to understand the sources of such variations. Our findings indicate that the bulk of the variation in emissions intensities per dollar of output is due to differences in the value of output per animal produced by each animal in different regions. The lower value generated per animal implies higher emissions intensity per dollar of output. Thus, in countries with higher emissions intensities the negative effect of a global GHG tax will be larger. Due to variations in livestock emissions intensities across regions taxing private consumption in individual regions to achieve global emissions reduction can lead to different results compared to that of a global GHG tax on livestock.

Date/Time: 5/21/2010   02:00 PM - 03:00 PM
Location: KRAN 661