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Accounting for Substitution: Improving Estimates of GHG Reductions From Cattle‐Based Product Demand Shifts

Brandon R. McFadden, Sara Gardner Hedgecock, Lawton L. Nalley, Alvaro Durand‐Morat, Aaron Shew and Rodolfo M. Nayga

Applied Economic Perspectives and Policy, 2026, vol. 48, issue 4, 903-915

Abstract: Estimates of reductions in greenhouse gas (GHG) emissions from lower demand for cattle‐based products must account for substitution effects. This study collected data through two surveys—one on ground beef and another on dairy milk—to evaluate substitution effects and potential GHG reductions. Results indicate that informing consumers about product‐level emissions decreases demand for cattle products and GHG emissions. However, ignoring substitution effects leads to an overestimation of the actual emission reduction potential. For accurate assessments, substitution effects should be included when estimating emission reductions for cattle‐based products to better reflect the true GHG mitigation potential.

Date: 2026
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https://doi.org/10.1002/aepp.70059

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Persistent link: https://EconPapers.repec.org/RePEc:wly:apecpp:v:48:y:2026:i:4:p:903-915

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