Abstract

Beef production represents a huge contribution to climate change as the largest source of greenhouse gas (GHG) emissions within animal agriculture. One way of reducing the scale of negative externalities owing to beef production is to implement a Pigouvian tax on beef suppliers. In this article, the effects of such a tax on U.S. beef consumption were studied using ordinary least squares (OLS) regressions to determine the relationship between beef price and domestic beef supply, as well as the elasticity of demand for beef. The results suggest that the a price increase would statistically significantly reduce beef consumption. This would subsequently reduce the negative externalities owing to beef production. A carbon tax of $0.55 per pound of retail beef would result in a decrease in domestic supply of 857,230 tons which translates into a decrease in GHG emissions of 36.1 billion lbs.

Advisor

Krause, Brooke

Department

Business Economics

Disciplines

Agricultural and Resource Economics

Publication Date

2018

Degree Granted

Bachelor of Arts

Document Type

Senior Independent Study Thesis

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© Copyright 2018 Ethan Greene