You are not currently logged in.
Access JSTOR through your library or other institution:
Voting for Environmental Policy under Income and Preference Heterogeneity
Essi Eerola and Anni Huhtala
American Journal of Agricultural Economics
Vol. 90, No. 1 (Feb., 2008), pp. 256-266
Stable URL: http://www.jstor.org/stable/30139504
Page Count: 11
You can always find the topics here!Topics: Organic farming, Taxes, Organic food movement, Tax subsidies, Environmental policy, Consumer goods, Organic foods, Subsidies, United States environmental policy, Tax rates
Were these topics helpful?See something inaccurate? Let us know!
Select the topics that are inaccurate.
Preview not available
We examine the design of policies for promoting the consumption of green products under preference and income heterogeneity using organic food as an example. Two instruments are considered: a price subsidy for organic food products and a tax on conventional products. When the income differences and social benefits of organic farming are large, these factors dominate in shaping the policy preferences of the majority. In this case, the environmental policies preferred by the majority tend to be stricter than socially optimal policies. However, when income differences are small, policy preferences are more directly determined by tastes for organic products and the majority may prefer no intervention.
American Journal of Agricultural Economics © 2008 Agricultural & Applied Economics Association