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The Scottish milk chain is the highest green house gas emitter out of the dairy chain. This paper studies the effect of prices on household carbon footprints of both Scottish urban and rural households and the subsequent demand for milk products. Household time series data for 2006–2011 and carbon footprint data were used to estimate a static demand model. Results suggest that a 1% increase in net milk prices equates to a likely carbon footprint reduction of 4,684.13t CO2e /y for urban households. Both households were found to substitute into the lower carbon alternative of soya milk when whole milk prices increase.


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