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Does a Meat tax Trump Green Label Education EffectsJonthan Webster Lawing (6983699) 14 August 2019 (has links)
External cost from meat consumption raises an issue of possible government mechanisms toward mitigation. Economic theory provides a framework for determining the optimal set of mechanisms considering the associated benefits and costs. Such a theoretical development rests on the responsiveness of consumers to alternative mechanisms. Considering two mechanisms, a Pigouvian tax and green-label education, yields tandem theoretical optimal government mechanisms. Populating this theoretical model with empirically derived elasticities and other parameters provides an application. Results indicate education alone will likely not yield a high social-optimal level of mitigation. Instead, a Pigouvian tax will be required to move consumption toward a socially desired state. <br>
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