Optimal Food Waste: Taxes and Government Incentives

Bhagyashree Katare, Dmytro Serebrennikov, H. Holly Wang and Michael Wetzstein

No 252703, 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts from Agricultural and Applied Economics Association

Abstract: In 2010, 21% of the total U.S. food available for consumption was wasted at the household level. In response to this waste, a number of counties and U.S. localities have instituted policies (disposal taxes) directed toward reducing this waste. However, currently, there is no federal food-waste disposal tax. The aim of this paper is to establish a theoretical foundation for household food waste, and based on this theory, determine an optimal food-waste (disposal) tax along with government incentives. The theory unravels the interrelation between social food insecurity and external environmental costs, not generally considered by households when they waste food. An optimal disposal tax and government incentives involve Pigovian mechanisms and government benefits. For a zero level of food waste, the optimal disposal taxes and government incentives approach infinity.

Keywords: Agricultural and Food Policy; Food Consumption/Nutrition/Food Safety (search for similar items in EconPapers)
Pages: 40
Date: 2016-07
New Economics Papers: this item is included in nep-agr and nep-env
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea16:252703

DOI: 10.22004/ag.econ.252703

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