Beyond the impossible: Steering consumers away from beef

The effect of meat consumption on the environment is well-documented, yet little is known about the effect of policies targeting environmentally harmful food choices. I build a structural model of the demand for meat, which allows me to study three different policies: a 50% reduction of beef products on retail shelves, an environmental tax reflecting the environmental costs of food products, and advertisements for plant-based products that increase consumers’ valuation of them. I also analyze the supply side to estimate how prices would change in equilibrium under these policies. I find that limiting beef products alone does not reduce emissions significantly; its benefits can be easily matched with a small tax on beef, and the consumer welfare loss outweighs the environmental gains. Conversely, the other policies prove to be more effective in reducing emissions. However, I find that the burden of the tax is born disproportionately by underprivileged consumers, and its environmental benefits come mainly from consumers switching to poultry and pork products. Subsidizing these meat products while taxing beef might achieve more progressive results.