Demand for plant-based milk and effects of a carbon tax on fresh milk consumption in Sweden

A hypothetical carbon tax on the footprint of fresh milk products from animals (cow’s milk) and plant-based substitutes (rice milk, oat soy almond was applied to estimated price income elasticities for Swedish household expenditure these products. Overall aims were (i) estimate consumption patterns in households (ii) simulate direct distributed effects a milk. The results indicated that is affected mainly by income, rather than sociodemographic characteristics household. estimates revealed substitutional relationship between one hand low-fat standard other, while there complementary reduced-fat simulated based damage cost price. introduction would decrease dairy but increase because institutional different categories Thus levying be more likely promote climate-friendly consumption.