The Impact of Carbon Tax on Food Prices and Consumption in Canada

This study analyzed the impact of a carbon tax on food prices and consumption patterns in Canada. The findings suggest that a carbon tax has negative impacts on both food prices and food consumption patterns in Canada. The magnitude of the impact depends on whether agriculture sectors are exempt from the carbon tax. When these sectors are exempt, the negative impacts of a carbon tax on food prices and food consumption patterns are small. A multi-regional price model was constructed to analyze the impact of the carbon tax by region. Specifically, this study compared the changes in food prices and food consumption patterns among different provinces in Canada. The results showed that food prices in Quebec are the most affected, followed by Alberta. In addition, there was no evidence that the impact of a carbon tax on the food consumption patterns would vary by income group. These results shed light on the impact of carbon taxes on food security and affordability in Canada.


Issue Date:
2018-07
Publication Type:
Conference Paper/ Presentation
DOI and Other Identifiers:
Record Identifier:
https://ageconsearch.umn.edu/record/275913
Language:
English
Total Pages:
47
JEL Codes:
Q56; E17




 Record created 2018-08-16, last modified 2020-10-28

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