DRAGICEVIC, Arnaud Z.; PEREAU, Jean-Christophe

doi:10.1093/erae/jbae001

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DRAGICEVIC, Arnaud Z.

PEREAU, Jean-Christophe

Bordeaux Sciences Economiques [BSE]

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European Review of Agricultural Economics. 2024-03-12p. 1-45

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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.< Réduire

Mots clés en anglais

Agricultural economics

Network economics

Variational inequality

Supply chain

GHG emissions

Cooperatives

Climate pledge

Eco-taxation

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Comparing climate pledges and eco-taxation in a networked agricultural supply chain organisation

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