Abstract

We provide an economic rationale for applying a levy on meat consumption because of animal welfare considerations. This levy is similar to a Pigouvian fee as it accounts for externalities on animals produced for meat. Under total utilitarianism, the levy per animal is equal to the opposite of the farm animal utility level. The levy is thus a subsidy (resp. a tax) when the animal life is (resp. is not) worth living. Under average utilitarianism, the levy is always a tax as soon as human welfare is greater than animal welfare. We then calibrate the levy by combining the quality-adjusted life years and the Five Freedoms approaches. Compared to beef, the tax per kg of meat is much greater for chickens and pigs because these animals are raised under more intensive conditions and produce less meat per animal. This result stands in contrast with other meat externalities (e.g., climate externalities).

Co-auteur : Romain Espinosa (CIRED, CNRS)

Practical information