Economic,social and environmental effects of reducing dairy methane emissions through market-based policies: An application of the Livestock Policy Simulation Model |
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Institution: | 1. Animal Production and Health Division, Food and Agriculture Organization of the United Nations (FAO), Viale delle Terme di Caracalla, 00153 Rome, Italy;2. Facultad de Ciencias Economicas, Universidad Nacional de la Plata, Av. 7 nº 776, B1900 La Plata, Provincia de Buenos Aires, Argentina;3. Department of Economics and Management, University of Ferrara, Via Voltapaletto, 11, Ferrara 44121, Italy;4. National Dairy Institute of Uruguay (INALE), Av. 19 de Abril 3482, 11700 Montevideo, Uruguay |
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Abstract: | Several technological approaches to mitigate methane dairy emissions are available; however, assuming that technological change alone generates the necessary incentives to accelerate emissions reduction is risky. Without adequate market signals, producers might choose not to use the technologies available or to the desired extent. Addressing this economic problem requires altering producers’ and consumers’ behaviour by introducing incentives or constraints. Employing the livestock policy simulation model, we examine the effects of reducing methane emissions in the dairy sector under different market-based policy instruments. We used the primary dairy sector in Uruguay as a case study. The results show that a policy mix combining a set of market-based instruments can be more effective than a single policy instrument alone. |
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Keywords: | Livestock policy simulation model Computable general equilibrium model Market-based instruments Dairy methane emissions |
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