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Comparing climate pledges and eco-taxation in a networked agricultural supply chain organisation.
- Source :
- European Review of Agricultural Economics; Apr2024, Vol. 51 Issue 2, p354-398, 45p
- Publication Year :
- 2024
-
Abstract
- This paper examines the effectiveness of climate pledges and eco-taxation as strategies for mitigating climate change within a networked agricultural supply chain organisation. We utilise variational inequality techniques within a multicriteria decision-making framework and validate our theoretical findings through numerical simulations using a machine learning augmented algorithm. By employing this approach, we position the Agricultural Sector Roadmap, aimed at capping global warming at 1.5°C, within the wider agricultural sector's climate action framework. Our results demonstrate that environmental taxation emerges as the most effective approach for addressing climate change. Eco-taxation leads to a 57.87 per cent reduction in global emissions, whereas climate pledges only account for a 20.59 per cent reduction at the same level of production. Furthermore, eco-taxation results in a 45.68 per cent greater reduction in emission intensity compared to climate pledges. In contrast to climate commitments, an eco-fiscal policy is capable of achieving the objectives established by the European Union. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 01651587
- Volume :
- 51
- Issue :
- 2
- Database :
- Complementary Index
- Journal :
- European Review of Agricultural Economics
- Publication Type :
- Academic Journal
- Accession number :
- 177745581
- Full Text :
- https://doi.org/10.1093/erae/jbae001