Economic, social and environmental effects of reducing dairy methane emissions through market-based policies: An application of the Livestock Policy Simulation Model

Alejandro Acosta, Martín Cicowiez, Francesco Nicolli and Francisco Rostan

Journal of Policy Modeling, 2023, vol. 45, issue 2, 345-361

Abstract: Several technological approaches to mitigate methane dairy emissions are available; however, assuming that technological change alone generates the necessary incentives to accelerate emissions reduction is risky. Without adequate market signals, producers might choose not to use the technologies available or to the desired extent. Addressing this economic problem requires altering producers’ and consumers’ behaviour by introducing incentives or constraints. Employing the livestock policy simulation model, we examine the effects of reducing methane emissions in the dairy sector under different market-based policy instruments. We used the primary dairy sector in Uruguay as a case study. The results show that a policy mix combining a set of market-based instruments can be more effective than a single policy instrument alone.

Keywords: Livestock policy simulation model; Computable general equilibrium model; Market-based instruments; Dairy methane emissions (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jpolmo:v:45:y:2023:i:2:p:345-361

DOI: 10.1016/j.jpolmod.2023.02.006

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