Demand elasticities and environmental implications of a carbon tax on meat

Animal-based foods play a significant role in reducing greenhouse gas emissions. However, meat consumption exceeds recommended doses. Taxing emission-intensive foods provides an incentive for consumers to shift towards more sustainable diets, as the tax causes a price increase. Our study aims to assess the impact of the carbon tax imposed, using the Almost Ideal Demand System to estimate demand elasticities for meat in Slovakia. Carbon taxation triggers highly elastic consumer responses in beef demand. Pork faces a rising demand due to its strong position in Slovak diets and relatively lower price compared to beef. Furthermore, our results reveal a significant carbon footprint reduction of CO2eq, exceeding 50 % of the beef carbon footprint and 40% of the chicken. This study highlights the importance of determining carbon taxation impacts on food demand in Slovakia and creates incentives to enhance future research.