arXiv 15 Apr 2024 · Econometrics · 1 citations (OpenAlex)
arXiv:2404.09467 · PDF · DOI · OpenAlex · Extracted main text
In the search for political-economic tools for greenhouse gas mitigation, carbon pricing, which includes carbon tax and cap-and-trade, is implemented by many governments. However, the inflating food prices in carbon-pricing countries, such as Canada, have led many to believe such policies harm food affordability. This study aims to identify changes in food prices induced by carbon pricing using the case of Canadian provinces. Using the staggered difference-in-difference (DiD) approach, we find an overall deflationary effect of carbon pricing on food prices (measured by monthly provincial food CPI). The average reductions in food CPI compared to before carbon pricing are $2%$ and $4%$ within and beyond two years of implementation. We further find that the deflationary effects are partially driven by lower consumption with no significant change via farm input costs. Evidence in this paper suggests no inflationary effect of carbon pricing in Canadian provinces, thus giving no support to the growing voices against carbon pricing policies.
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The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.
| Reference | Intensity | Mentions | Sections | Main text | |
|---|---|---|---|---|---|
| 1 | Konradt, M. and B. Weder (2021) Carbon taxation and inflation: evidence from the european and canadian experience | 1.000 | 9 | 4 | 100% |
| 2 | Beck, M., N. Rivers, R. Wigle, and H. Yonezawa (2015) Carbon tax and revenue recycling: Impacts on households in british columbia | 0.928 | 4 | 3 | 100% |
| 3 | Tombe, T. and J. Winter (2023) Energy and environmental policy trends: Emissions pricing and affordability: Lessons from british columbia | 0.928 | 4 | 3 | 100% |
| 4 | McKibbin, W., M. Konradt, and B. Weder di Mauro (2021) Climate policies and monetary policies in the euro area | 0.843 | 3 | 3 | 100% |
| 5 | Government of Alberta (2009) Annual Summary of Specified Gas Emitters Regulation: 2009 | 0.737 | 3 | 2 | 100% |
| 6 | Moessner, R (2022) Effects of carbon pricing on inflation | 0.737 | 3 | 2 | 100% |
| 7 | Statistics Canada (2024) Consumer price index, monthly, not seasonally adjusted | 0.737 | 3 | 2 | 100% |
| 8 | Winter, J., B. Dolter, and G. K. Fellows (2023) Carbon pricing costs for households and the progressivity of revenue recycling options in canada | 0.737 | 3 | 2 | 100% |
| 9 | Network for Greening the Financial System (2020) Climate change and monetary policy | 0.644 | 2 | 2 | 100% |
| 10 | Chen, Y. and T. Tombe (2023) The rise (and fall?) of inflation in canada: A detailed analysis of its post-pandemic experience | 0.644 | 2 | 2 | 100% |
Showing the top 10 of 32 scored citations.