Climate Change Policies and the Carbon Tax Effect on Meat and Dairy Industries in Brazil

This study analyzes the impacts of reducing greenhouse gas (GHG) emissions on meat and dairy industries. To achieve this goal, Global Trade Analysis Project (GTAP) database was used in a Computable General Equilibrium (CGE) setting, which allows for inclusion carbon taxes definition four alternative environmental policies scenarios using both Warming Potential (GWP) Temperature (GTP) as GHG measures. All analyze main effects carbon-based tax economic instruments industry national production, trade, emissions, comparing results different measures GHG, GWP, GTP from Greenhouse Gas Emissions Estimation System (SEEG) sectoral Brazilian database. In contrast with other industries, relatively lower industries seem to be most adequate terms cost distribution structure when only GWP measure is considered. Urban activities less-methane-intensive benefit climate change designed GWP-based rather than GTP-based taxes. The article also highlights importance gradual introduction taxes, allowing vulnerable transition moment adopt clean technologies and/or redirect activity less-GHG-emitting segments.