This analysis addresses how taxing meat aligns private costs with the broader social costs of animal welfare, suggesting potential policy measures.
Meat consumption imposes externalities on farmed animals. According to basic economic principles, such negative externalities can be addressed through corrective measures, such as taxation, which align private costs with the broader social costs. This raises a novel policy question: should meat be taxed to account for its impact on animal welfare, and if so, what would be the appropriate level of taxation?
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Espinosa et al. (2025) studied this question.
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