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The Impact of Carbon Tax on Food Prices and Consumption in Canada

T. Wu and P.J. Thomassin

No 275913, 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia from International Association of Agricultural Economists

Abstract: This study analyzed the impact of a carbon tax on food prices and consumption patterns in Canada. The findings suggest that a carbon tax has negative impacts on both food prices and food consumption patterns in Canada. The magnitude of the impact depends on whether agriculture sectors are exempt from the carbon tax. When these sectors are exempt, the negative impacts of a carbon tax on food prices and food consumption patterns are small. A multi-regional price model was constructed to analyze the impact of the carbon tax by region. Specifically, this study compared the changes in food prices and food consumption patterns among different provinces in Canada. The results showed that food prices in Quebec are the most affected, followed by Alberta. In addition, there was no evidence that the impact of a carbon tax on the food consumption patterns would vary by income group. These results shed light on the impact of carbon taxes on food security and affordability in Canada.

Keywords: Demand and Price Analysis; Food Consumption/Nutrition/Food Safety; International Development (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-agr, nep-ene and nep-pbe
Date: 2018-07
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