Can carbon taxes and subsidies promote both carbon reduction and economic growth in dairy farming?—A case study from the global golden milk source belt

Dairy farming (DF) is a significant source of carbon emissions (CEs) in animal husbandry. How to use taxation and subsidies to promote carbon emission reduction while ensuring industrial economic growth has become a focus of academic attention. This study uses a market equilibrium model to explore t...

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Main Authors: Shuai Shi, Changyu Liu, Jia Chi, Yu Jing, Xiaochen Wang
Format: Article
Language:English
Published: Frontiers Media S.A. 2025-05-01
Series:Frontiers in Sustainable Food Systems
Subjects:
Online Access:https://www.frontiersin.org/articles/10.3389/fsufs.2025.1349340/full
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author Shuai Shi
Changyu Liu
Jia Chi
Yu Jing
Xiaochen Wang
author_facet Shuai Shi
Changyu Liu
Jia Chi
Yu Jing
Xiaochen Wang
author_sort Shuai Shi
collection DOAJ
description Dairy farming (DF) is a significant source of carbon emissions (CEs) in animal husbandry. How to use taxation and subsidies to promote carbon emission reduction while ensuring industrial economic growth has become a focus of academic attention. This study uses a market equilibrium model to explore the impact of carbon emission tax (CET) and subsidies on carbon abatement and economic growth in dairy farming. It sets up different scenarios to find a win–win ratio between tax and subsidy. The empirical test was carried out in Heilongjiang Province in the global golden milk source belt. The results show that the scenarios significantly suppressed CEs. However, carbon taxes led to a decrease in milk yield, while subsidies led to an increase. If the subsidies are <92% of tax revenue, there is a decrease in milk yield. When the carbon tax revenue is equivalent to the subsidies, a reduction in emissions of 0.02–0.11% can be achieved, accompanied by an increase in milk yield ranging from 0.032% to 0.160%. When the subsidy-to-tax ratio ranges from 1.311 to 2.045, dairy yield growth is most closely aligned with emissions, enabling the government to make decisions based on different policy targets.
format Article
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language English
publishDate 2025-05-01
publisher Frontiers Media S.A.
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series Frontiers in Sustainable Food Systems
spelling doaj-art-af890ccd6e204b4bbbc9bbaec088e7582025-08-20T02:16:10ZengFrontiers Media S.A.Frontiers in Sustainable Food Systems2571-581X2025-05-01910.3389/fsufs.2025.13493401349340Can carbon taxes and subsidies promote both carbon reduction and economic growth in dairy farming?—A case study from the global golden milk source beltShuai Shi0Changyu Liu1Jia Chi2Yu Jing3Xiaochen Wang4College of Economics and Management, Northeast Agricultural University, Harbin, ChinaCollege of Economics and Management, Northeast Agricultural University, Harbin, ChinaCollege of Economics and Management, Northeast Agricultural University, Harbin, ChinaCollege of Economics and Management, Northeast Agricultural University, Harbin, ChinaCollege of Letters and Science, University of California, Davis, Davis, CA, United StatesDairy farming (DF) is a significant source of carbon emissions (CEs) in animal husbandry. How to use taxation and subsidies to promote carbon emission reduction while ensuring industrial economic growth has become a focus of academic attention. This study uses a market equilibrium model to explore the impact of carbon emission tax (CET) and subsidies on carbon abatement and economic growth in dairy farming. It sets up different scenarios to find a win–win ratio between tax and subsidy. The empirical test was carried out in Heilongjiang Province in the global golden milk source belt. The results show that the scenarios significantly suppressed CEs. However, carbon taxes led to a decrease in milk yield, while subsidies led to an increase. If the subsidies are <92% of tax revenue, there is a decrease in milk yield. When the carbon tax revenue is equivalent to the subsidies, a reduction in emissions of 0.02–0.11% can be achieved, accompanied by an increase in milk yield ranging from 0.032% to 0.160%. When the subsidy-to-tax ratio ranges from 1.311 to 2.045, dairy yield growth is most closely aligned with emissions, enabling the government to make decisions based on different policy targets.https://www.frontiersin.org/articles/10.3389/fsufs.2025.1349340/fullcarbon tax-subsidy policydecoupling analysismarket equilibriumdairy farmingglobal golden milk source belt
spellingShingle Shuai Shi
Changyu Liu
Jia Chi
Yu Jing
Xiaochen Wang
Can carbon taxes and subsidies promote both carbon reduction and economic growth in dairy farming?—A case study from the global golden milk source belt
Frontiers in Sustainable Food Systems
carbon tax-subsidy policy
decoupling analysis
market equilibrium
dairy farming
global golden milk source belt
title Can carbon taxes and subsidies promote both carbon reduction and economic growth in dairy farming?—A case study from the global golden milk source belt
title_full Can carbon taxes and subsidies promote both carbon reduction and economic growth in dairy farming?—A case study from the global golden milk source belt
title_fullStr Can carbon taxes and subsidies promote both carbon reduction and economic growth in dairy farming?—A case study from the global golden milk source belt
title_full_unstemmed Can carbon taxes and subsidies promote both carbon reduction and economic growth in dairy farming?—A case study from the global golden milk source belt
title_short Can carbon taxes and subsidies promote both carbon reduction and economic growth in dairy farming?—A case study from the global golden milk source belt
title_sort can carbon taxes and subsidies promote both carbon reduction and economic growth in dairy farming a case study from the global golden milk source belt
topic carbon tax-subsidy policy
decoupling analysis
market equilibrium
dairy farming
global golden milk source belt
url https://www.frontiersin.org/articles/10.3389/fsufs.2025.1349340/full
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