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

Author

Listed:
  • Arnaud Z. Dragicevic
  • Jean-Christophe Pereau

    (BSE - Bordeaux Sciences Economiques - UB - Université de Bordeaux - CNRS - Centre National de la Recherche Scientifique)

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.

Suggested Citation

  • Arnaud Z. Dragicevic & Jean-Christophe Pereau, 2024. "Comparing climate pledges and eco-taxation in a networked agricultural supply chain organisation," Post-Print hal-04510138, HAL.
    • Handle: RePEc:hal:journl:hal-04510138
    DOI: 10.1093/erae/jbae001
    as

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