Thanks to Mr Wakerley for finding this latest study on beef.New research out today from Oxford University indicate that red meat should rise in price by 20% to cover the health costs, and processed meat by 100%! At current prices the social cost of consumption is way higher than the social benefit. Are you for a tax on red meat to internalize the externality and bring red meat production and consumption to a socially economic quantity?
Click here for the article.
Questions to discuss:
Could you draw the market failure diagram?
How effective would this policy be?
Are there any potential unintended consequences?
No comments:
Post a Comment